For those interested, I took the comments James made about horror and sanity, and I used them as a springboard for a write-up on my blog. Reading over the blog comments, most people seemed to either be totally against his opinion, or totally backing it up. I think I come in somewhere in the middle.
James, thanks for posting on the subject in the first place. It made me rethink the way I was approaching horror and sanity in my games, and in the end I am a better game master for it.
Here is the blog post.
Shane