Honestly iv'e found myself drifting more towards the psychological aspect of horror games (namely silent hill) as not only do i feel they create a better story, but also because the atmosphere of the games have been quite strong. I love that feeling that the world is against you, that youre in a nightmare of your own creation, youre own personal hell. I love having my mind played with, with little nods that are only given relevance in the end, silent hill 2 did this very well.
However, im fine with any of the three. I believe iv'e seen some concept art of some terrifying monsters, so id be inclined to say it might not go for the total realism aspect, but id be fine if they did.
Id hope beyond anything though that there is a psychological element in some way, it doesnt need to be just like silent hill, but to play with the players/protagonists mind, or creating that feeling of did i just see that, id love that, as i feel it creates the strongest atmosphere.
What is great in man is that he is a bridge and not an end.
WIIU: (To be announced, after zelda launches)