Well, I wouldn't go that far. There are great horror films out there, it's just alot of them aren't in theaters. After Dark Horror films has a great selection films. Then you have things like The Collector, Hatchet, Wrong Turn, etc. Horror films are stronger in the direct to DVD category these days. The Devils Rejects, Drag Me To Hell, etc, those are ones that were in theaters and are original/ ood ideas as well. Take this one for example, which was critically acclaimed, though, it was direct to DVD.
http://www.youtube.com/watch?v=vMoiNyyXSwU&feature=related