You're not reading what I am saying; yes Halloween should be scary. But several people don't like being scared to the point of going into things they don't understand. The Bloody Mary story, for instance, was extremely dark--a very macabre and twisted concept that brought about fear even be looking at the billboards. This is the kind of thing people will stay away from.
HHN has probably realized that considering the size and scope of their event, they needed to stop targeting only the small niche that were hardcore horror fans who ate up the R-rated stuff in the icon stories (notice how Lady Luck tried to be an icon that was easier to swallow and how it failed miserably). Casual horror fans (the type who see PG-13 horror movies and slasher flicks) can still be scared by The Walking Dead (who said it made anyone comfortable?), without being completely isolated by a crazy backstory and gory advertising materials. Hell, I remember the advertisement for the Jack the Clown year (when I first moved to Orlando) and thought there was no way I'd go to that event; of course, had I seen a picture of Michael Myers or even Jack Torrance, I would've been a little less hesitant to go because I know those characters, I can relate with them, and I can be scared by them without being made uncomfortable. In a hospitality/tourism business as big as Universal, you can't make people uncomfortable--however just because you and I don't think TWD is scary doesn't mean other people won't.
Universal is a growing business, and a major player in Orlando now, even more so than before. Cult followings aren't going to do them any good anymore. Also, as to the capacity argument, it should be noted that the houses were pulsed in 2006, inflating wait times.
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Yep