At first, I didn't like it, but I began to warm up to it when I looked at it's benefits.
- You get to see the grotesque monsters in more detail, since the camera is very close.
- Sebastian's body doesn't block as much from the screen as before, it frees up most of the screen for aiming.
- Less jerky movement when in tight areas, remember how the camera suddenly gets close when a wall is behind you?
Also, it's not really first person. First person means from the POV of the character, in other words, you're looking FROM Sebastian's eyes. But the camera here is third person, just very close to the side of Sebastian's head.
Yeah it sucks not having to see Sebastian's body, but I'm sure it was done for a reason after a lot of fine tuning, the camera changed so many times and they finally arrived at what they think is the ideal view.
If I'm not wrong, The Evil Within is the first game to adapt this aiming camera? If it works well, I can see a lot of other developers using it. It seems like first person, but is actually third person. So it doesn't feel jarring when you aim.
EDIT: Here is a clip from the latest videos a friend of mine made showing the camera:
Now imagine if it was the old camera, it wouldn't look as menacing, right? And Sebastian's body would've blocked valuable space from the view.