Counterpoint:
1) First person games cause nausea in a not-insignificant percentage of players, reducing your audience.
2) first person games aren't scarier just because you narrowed the field of view. Silent hill games since their inception were masters of keeping things slightly out of frame/focus that you wanted to look at, but just couldn't...making the player feel helpless.
3) first person horror screams "lazy developers" who don't want to be bothered with things like cinematic camera angles or complex main character animations...so they just stick a flashlight/gun/whatever onto the camera and voila...no longer have to worry about the character's arm clipping through a wall, or the camera repositioning when the character gets into an odd corner of level geometry, or even having to make a full set of character animations to begin with! Lazy profit. 🤬
