Much of Silent Hill's identity is copied wholesale from Jacob's Ladder, an American film. This isn't a negative thing. Jacob's Ladder is very good. But the identity of Silent Hill is not particularly complicated, not particularly difficult to understand, and not particularly difficult to imitate if a designer wishes. You don't need Team Silent to make an exceptional Silent HIll game, just as you don't need Sonic Team to make an exceptional Sonic game.
More to the point, Silent Hill 2 clashes with the first game thematically and narratively, which is something that tends to happen when the original writer and designer leaves, and you hand writing duties to one of the AI programmers, and directorial duties to one of the background designers. Don't get me wrong. I'm not saying they did a bad job, but rather that some people think Silent Hill 1-3 had some grand vision behind it. Some unifying grand design that spanned the first three games. But that wasn't true. Games like Origins and Shattered Memories and perhaps Downpour cop flack for "misunderstanding" Silent Hill in their varied interpretations, but Silent Hill 2 was guilty of the same thing.
The only "American" Silent Hill games were Homecoming and Book of Memories. Origins and Shattered Memories were British. Downpour was Czech. I've always liked the idea of handing game series to various studios around the world so each studio brings a unique cultural flavour to the work.
I've always found it interesting how many people objected to Sam Barlow making Silent Hill games (he wrote and directed Origins and Shattered Memories), but Hideo Kojima making Silent Hill was seen as totally fine. Even more startling is how PT was basically NOTHING LIKE SILENT HILL, but fans ate it up because it was Kojima. The way people immediately embraced Kojima making Silent Hill, and the animosity toward any developer or director who coincidentally wasn't Japanese always had an unpleasant whiff of Japanese supremacism -- something sadly common in gaming. It's eyebrow raising how something similar arose with Shinji Mikami and John Johanas in The Evil Within series.
Silent Hill is the result of a distinctly Japanese take on an American town and characters, and I'm very satisfied with that. Whereas Resident Evil is a more archetypal, tropey take on American horror (haunted mansions, zombie outbreaks, badass cops in the lead roles), Silent Hill dares to innovate, and be weird and off-kilter in all the right ways. If the identity of Silent Hill isn't particularly difficult to understand or emulate, as you suggest, then we'd have gotten more quality titles by now. Maybe the very problem is actually that the formula of SH2 is easy to ape, which resulted in more emotional baggage storylines, like Origins and the others. All of the original four innovated in the right ways, to where something like SH4 is seen as very divisive, but still has a dedicated cult following (myself included).
SH2 isn't seen as a misinterpretation of SH, the reason for that being it's a one-off, not some template to follow where the town is this staging ground for a gauntlet of the protagonist's inner turmoil come to life, like they kept pushing with Origins, Homecoming, or Shattered Memories (not too sure about SM, I'm mostly assuming there, since the game was too bad for me to finish). The misunderstanding I speak of is that all these other developers aim to follow a "template" too closely. There's no innovation.
The comment about Japanese supremacy is outright bizarre, in my eyes, since the reason my sentiment is so common is actually quite simple: the original four, far and away best Silent Hill games came from Japan, specifically the ragtag Team Silent (I'm aware that it wasn't a cohesive team for all entries, members came and went). It was the perfect storm of talent and a willingness to innovate. Unless we're given another equally compelling SH title from somewhere else in the world, I'll just trust Japan with it more. I don't mean to imply supremacy, and now that I think on it more, I agree with you that we shouldn't be so quick to say a foreign studio wouldn't do as good of a job (some of the best Metroid games are by Retro Studios, an American dev). I'm not even a big Metal Gear fan, but I know Kojima to be anything but conventional or predictable, and so that's another reason why I wanted to see his and Del Toro's take on things. Silent Hill isn't supposed to be formulaic or stale. A Kojima and Del Toro partnership is anything but. The evidence? Just take a gander at what we've seen of Death Stranding.
Oh, and fair play calling me out for generalizing, and getting the details wrong about the country of origin for Shattered Memories. That was my mistake.