Does Perma Death make a game scarier?

[Cuyir]

It's all about the implementation, not the mechanic itself.

I think it's being done well in Routine (from what i've read and seen).

It's basically an ''open world'' horror game where you go wherever you want (assuming you have the right codes and such). So if you die and lose all progress you can just go to another area and decide to hit the area where you died when you feel better prepared.