Yes, I like horror sometimes, but I tend to wimp out if it gets too intense. I felt like making something with a scary atmosphere, but something you could figure your way out of. For me, games should be about having control and enjoyment, I do not generally like games that make me feel like I am helpless.
But I have thought about some kind of penalty for getting too close to the monster. Maybe instead of killing you, it could pick you up and drag you off to some dungeon that you have to find your way out of. I'm thinking back to Legend of Zelda: Windwaker, where the guards never killed you, but put you back in your cell ... just a thought.