Final comment explaining my opinion on this game. (More spoilers probably)
Starting with what psychological horror is. From Wikipedia "Psychological horror is a subgenre of horror and psychological fiction with a particular focus on mental, emotional, and psychological states to frighten, disturb, or unsettle its audience." Do you want to know what this game would need to do to disturb me with mental or emotional states? Make me care about, sympathize with, or relate to its characters or world. This game does very little to do this, and as mentioned before; the characters are boring and grating, so I'm not going to care about them.
As for your point on whether I'd want these characters to suffer, I don't have to want, I'm forced to! That's most of the game!! And by making your characters have the depth of a cardboard cutout, it doesn't make me feel anything to see them hurt.
And arguably the worst part. "The mystery isn't everything." I've explained how other parts of this game have failed to resonate with me, so after everything else what's left is the mystery. So in my case, the mystery is everything, and it was dissatisfying and bland, two words that I think can sum up my whole experience with this game.
I think most of my problems with this game come down to, it's really not my thing, I don't understand, or I don't like the way it's presented. I'll let y'all continue to enjoy it, I'm probably annoying people anyway. Off to the next thing I'm going to obsess over, positive or negative!