I totally agree. I find that "horror" element not in masses of blood and guts and gore in general! But more in the psychological impact of a movie. And this one hit home perfectly! It is amazing how many people actually thought they were watching "real" footage. Just goes to show what a great job the team did. :)
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Yup. I think the idea that necessity is the mother of invention rings true; it's easy for lazy filmmakers to assume that the psychological impact of a film is tied to how grotesque the images are, when they've got a sufficiently large budget to be lazy with, rather than figuring out what it is about ourselves, other people and the world around us that elicits genuine horror.