As a hardcore SH2 fan, I think it looks pretty great actually with just a few flaws.
They are nailing the town itself, especially the streets, that IS Silent Hill, it puts stuff like Homecoming and Downpour (which were always trash) to shame so much absurdly harder it makes me laugh, I'm so glad I have something I can point to that's better now than 15 years ago.
The only issues are Angela looks a little off (still gets a pass) and Maria's new outfit is very dumb, she's a stripper, let her dress like she works as one, there's actually a very good plot reason why for her design in the original game.
And I am skeptical of the combat, pointing your gun and shooting is not really what Silent Hill is about, it's not an action game, but I am especially impressed with how they're nailing James, it's just great.
I always dreamed about a proper Silent Hill 5 that never happened, but this is the closest to that dream we're getting, at least feeling like I'm authentically back in that world even if it's not a new story, it's just a fact that today we can do things graphically, like making everything on the streets look wet, after all it's a fog ridden town, that couldn't be done on the PS2, the PS2 will always be soulful, but this is a situation where it feels like a worthy way to update things.