I'm not entirely sure if a new Project Zero would work to be honest. Love the first game (and was too frightened to play the second
) but I think one of the things that's killed the survival horror is that the consoles are too powerful now.
As Aoife argues in the Graphics hot topic, and mentions above, a lot of the older survival horrors including Project Zero benefit from the grainy textures, fixed camera angles and poor lighting. In most cases these were design choices to get around limitations of the console and the CRT TV you were playing it on. Switch to the current crop of hinted at next gen games and we have photo realistic, well lit games with free roaming cameras. Gone for good are the "What was that?" moments, because the image won't have been lo-res enough on your 50 inch HDTV home cinema system to leave you in any doubt, and no developer will release a game with a fixed camera or poor lighting because they'll worry that complaints from internet idiots who miss the point about it will lower their metacritic score.
You must fear your target, yet respect it, like the crocodile respects the helicopter.