The horror elements were lost after the original, sadly. In my opinion, the first game had a near-perfect balance of horror and action/cheese (much like Resident Evil 4).
I don't see horror making a return at this point, unless we got another reboot or a game with a fresh, unrefined protagonist who's just then awakening their powers and potential. Think DMC3/DmC Dante or Nero without much prior experience; maybe even a human character?
As it stands, horror wouldn't feel right unless the enemies felt truly threatening to the current Dante(s), which I don't think is possible anymore.