I disagree with permadeath. Sure death is seem as an inconvenience at best and a quicker means of travel at worst in several mmos. But to suggest permadeath is like realizing there are a couple of ants in your house and going straight to fumigating the house. EverQuest are a nasty biting death penalty, where you had to go loot your gear and lost like 1/4th of a level, with the possibility of deleveling. That kind of penalty, even with clerics who could restore most of it, made people a touch more careful.
Permadeath though no one would bother with raids, or when they died many would drop the game out of frustration on the time it took to max out a character. Plus if it wasn't a game quitting loss, if maxing out didn't take long, permadeath loses its original purpose.
As for horror, its a tad hard to do. I mean, and sorry for using EverQuest again, but Kithicor was a tad scary at night. Sure you could hug the walls and usually avoid death, but again, that was usually. Though even that isn't really horror like you're getting at.
Kinda looking forward to Phantasy Star Online 2, if only for a fun game to mess around with my friends with. Elder Scrolls Online has some interest but I might for a change wait for a couple of months to see how it does unlike several other MMOs in the past.
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