That's an interesting - and surprisingly optimistic view on the state of Horror, A.J. It's good to see some hope for the genre from a fan, something that I personally can no longer claim to have in abundance.
Speaking of which, and in order to give this rather general discussion a (more?) interesting turn, on top of your thoughts of the genre as a whole, what have been some greats as of the last five years or so that have really pleased all of you as Horror fans? Here are some of mine:
Hatchet/Spiral/Feast films (as listed above),
Drag Me To Hell,
Scream 4 was okay,
umm...that may be it off the top of my head!