I think I get the kind of game you wanted to make! And I think you perfectly captured the atmosphere! While blur is one element that enhances the game's mood, I almost always get motion sickness when the blur is too intense, so that part was a bit tough for me. I wonder if it would be possible to toggle the blur effect on and off in the options.
If you just polish that part a little, it could become a truly great classic horror game. I'll be looking forward to it!