I finished up my playthrough on normal difficulty, and I think it pretty damn good. Where the game really shines is it's map layout and how you get from point A to B. In that way it really reminds me of RE1, 2 and 3. There's a bit of hiding and avoiding certain enemies - not only the Baker family - but after the first hour you are given the choice of combat or to sneak about.
Another fun thing is finding all the collectibles and hidden items. The rooms can seem chock full of stuff even after you first think there's not much there. The crafting mechanic is also well done giving you the choice between making health times or ammo. Gun feedback is fantastic when landing a head shot. They got this just right.
I immediately wanted to jump back in and play the Madhouse difficulty but I'm taking a break as I want it to be fresh. I'm actually replaying TEW on Nightmare on PS4 as I recently picked it up (I got it on 360 at release). The reason is that in some ways RE7 reminded me of TEW, and I think it's in terms of pacing. Capcom seems to have rediscovered how to pace a game. It's really well done, from the items and weapons you pick up to the game as a whole. Its also technically polished. Aside from the occasional texture pop in RE7 is rock solid, and playing TEW straight after doesn't do TEW any favours. I'd forgotten how janky it is.
So, yeah, pretty great. Not as good as REmake or 4, but it's a good start for a new direction of the series. I hope they don't screw up REmake2.