I asked exactly the same question a while ago... π
For me, they don't ruin the game if they are used in moderation and make narrative sense with the rest of the story...
Are you designing a horror game BTW? π
Oh I'll check it out!
My game is made with RPG Maker, and I try to play with lighting, music, and effects to create tension in the environment.
Depending on the decisions the player makes, they will accumulate points of madness, horror, and depression, and depending on the value of these parameters, the scenarios will change, or they may even lose the game. 10-12 hours of gameplay I guess.
I've been working on the project for about a year, and I hope to have a playable demo in 2-3 months.
You can take a look here. π