Homecoming has a different style to it's story telling but there's certainly horror in there. I think part of the problem is that The Collective were making a sequel to someone else' series, so they had to include enough iconic stuff so that people wouldn't accuse them of cashing in on a brand name. How many times can we see a nurse or a straightjacket and be scared?
Eye of the beholder and all that but I'd argue that it was at the very least better than The Room. There was a lack of tech support for people who bought the PC version, so if you were one of the unlucky ones who suffered from the graphical bugs, or not being able to launch the game in the first place then you'd essentially thrown your money away. The game itself was good when it was working though, in my opinion.