Don't get me wrong, I do enjoy Resident Evil 5. But it shouldn't be called a horror game. Capcom should just admit they've changed Resident Evil into a pure action shooter instead of trying to pass it off as survival horror in their advertisements.
And yeah I've played Rule of Rose, it was released here in the US by a company called Atlas who bought the rights from Sony Japan. To be honest I didn't really like it. I wanted to like it because the idea of playing a horror game set in the 1930's with a Dark Fairy Tale setting intrigued me, but the game had a lot of flaws. For example there was hardly any voice acting except for the cutscenes, most of the conversations were text only. It's near impossible to kill enemies and some are ludicrously overpowered, like for example you could hit enemies with a weapon and watch it go through them without doing any damage. Also you can go through the entire game without even needing to find items like health and weapons, and because they're all hidden you have to get Brown to find everything and it can be a pain in the butt to follow him everywhere. The environments aren't really that interesting (most of the game is set in a giant airship). The only good thing about the game was the plot, which was really deep and had a nice twist in the end. But it can also be very confusing, and a great plot isn't enough to make up for crappy gameplay in my opinion.
And yeah I love Fatal Frame too! Honestly the reason I think FF4 was released in Japan only is because ever since Resident Evil 4 was released and became such a huge success, all these companies have decided that American and European fans only want to play horror games that are more about action then scares. So now every so-called "horror" game tries to copy Resident Evil 4, and thus was the end of the traditional horror games we've all loved. Since real survival horror games are considered "too Japanese" for Western gamers they rarely get released outside Japan anymore. =/