I really liked it. I especially enjoyed that they incorporated so much music from the actual franchise into it. I also disliked the fact that Pyramid Head was present, but you couldn't really make a SH movie without him, imho. Plus, his scene with the church and the tearing of the skin and all was so gorey and wonderful. The whole thing sort of reminded me of SH1 bashed into SH2 along with some random generic SH crap.
The scene you're talking about "with the too far-ness of it all," I thought was done rather tastefully. Or rather, as tastefully as something like that could be done. In reality there is no "couth" way to do something like that >_> I remember watching that and going "They wouldn't. Noooooo way. Noooo, those barbed wires aren't going where I think they're going. Maybe they're just gonna wrap around her or something. There's no WAY they would do that. Oh my god they're doing it. Oh my god. Oooooooooooooooh my god. They actually did that."