The Heretic
Should be playing D&D instead
But were audiences ever really scared? A century ago, even half a century ago, people in Western culture had much greater exposure to IRL death and suffering. When the first horror movies were coming out, people were still washing their loved ones' bodies when they died, maternal and childhood death rates were still pretty high, medicines was not nearly as effective, not just at saving lives, but of mitigating the long term effects of injury. Most horror movies were pure camp in comparison. I don't think people who go to horror movies ever went to be scared.
Perhaps it's in the realm of urban legend, but wasn't it said that early moviegoers would faint when the characters die? I think it goes back to what was discussed before. The modern North American has seen thousands of imaginary deaths by age eighteen, so it's lost it's ability to shock.
I think the "but they're campy!" vs "we're just jaded!" is a chicken and the egg comparison. I think the 'we're jaded' came first, and the campiness of modern horror came about because of that.
As for why people watch horror, I think it's for the adrenaline. The feeling of fear, being able to go outside your comfort zone in a safe environment (since what's going on the movie isn't real).
The Heretic