Horror films are a dead genre. The only good ones in recent time are the really gory ones like Hostel. The Saw movies were fine, but they were closer to the psychological thriller genre. The only way you can have a good horror movie is to assume your audience has never seen a horror movie before. The "scare" tactics in those types of movies have been done to death and practically none of them work. The only way you can really scare people these days is with disgusting shit, people getting their ankles cut off and things like that. Zombies, ghosts, murderers.... none of that is scary anymore. And sure enough, that's what most classic horror movies revolve around.
Horror will never be dead, it is a genre which will always have something going on, you just have to find the good stuff.