Parts of RE:R are good, but they're not necessarily "survival horror" like the previous games. They're mostly inspiring in the same fashion that the few attempts at horror in RE4. But they are a sign that Capcom could probably still make a decent horror game if they really wanted to. Without hunters thrown in the midst of the stupid episodic format, RE:R could have been a "good" game in its entirety. Part of me wonders if parts of Capcom really did want to create a classic horror game, but were forced to dilute it in order to turn it into an action game. Note that being an action game doesn't really exclude a game from an attempt at horror, but neither RE4 nor RE:R are horror games in their entirety and the action genre tends to empower characters to the degree that it betrays the horror aspect of it. The classic games walked a very thin line.
We'll see what Capcom can turn out. Capcom is probably capable of a horror game, but the problem with RE:R really seems to be direction, planning, and maybe even writing.