Here's an interesting freeware game that mixes both survival horror and an open ended format that let's you "decide how scary" the game is. It's called The House and it was made by Blazefire Productions.
http://www.moddb.com/games/the-house/downloads
Played a bit of it and it can be quite scary at times especially when you find yourself up against ghosts or zombies.
It's also pretty interesting to note that the game predated Resident Evil 5 in its use of real time to really add to the suspense and danger your character is in/ For example: if you decide to read a document, the game doesn't pause the action so you can read at your leisure. You'd better be a fast reader or something scary might attack you while you're up to page 5.
While it's not a traditional point and click adventure, nor is it an RPG, the game uses a top down view so as you can enjoy some kind of advantage in knowing where some horrifying creature is coming from.