The Evil Within is perfectly challenging on Survival (Normal) for me, but for most people I really think they should have just play on Casual (Easy).
The game is simply too hard for most gamers, especially today where most games are intentionally made easy so people don't have to struggle at all. (Nothing wrong with that.)
I have seen way too many people rage quit the game on Survival, many people even change their opinion on the game because of that.
I'll admit, the game is pretty mean at times, but you shouldn't let the difficulty affect your enjoyment of the game. I've heard many people who find the game too hard, but not wanting to lower the difficulty to Casual, because of their gamer pride or some shit. However, the truth is, Casual mode is actually best suited for their skill level, because this game really is unforgiving.
Seriously, The Evil Within is great, truly one of the best horror game of this generation, but unless you are one of those people who can enjoy punishing games, you should just play on Casual.