I'm not trying to start an argument about it, either, but I think it's fair to ask for evidence when broad generalizations are made. If there were protests, I'd be interested in reading about them, as it's not something I've ever come across. Either way, though, I think it's fair to point out most HHN fans who experienced the house came out fans.
I completely agree, for what it's worth, that the Hellgate of 2004 can in no way exist in 2022. Hellgate's appearance in 2015 was mostly symbolic, while its cameo last year was generic and shared its spot with Havoc. It'll be interesting to see the approach they take. A largely-female prison would definitely be a fresher take, but how do you make the house successful without the intense banter that made the original unique? A tough problem, to be sure, especially when they're under this sort of time crunch.
I'm not even sure Psychoscareapy can really ever come back in its original incarnation - the sequels tried (with varying to success) to move away from the stereotypical depiction of "crazy people in a loony bin." 2006's effort injected more borderline fantasy/supernatural into the premise with the addition of Jack, who had all of the wards in his thrall. 2010's effort seemed like it was shooting more for a Downey Asylum vibe - that is, more haunting and melancholy (with the ward explicitly rendered as ghosts) than outright crazy.