Agreed. I feel that Capcom's mistake is thinking that
Sequel Escalation was needed for this series. Escalation worked amazingly with RE2, but then they tried to go even further with Nemesis (letting you explore the whole of Raccoon City) and it was a bit underwhelming. Code Veronica was the infinitely superior game and it was far smaller in scale than Nemesis. Yet Capcom kept escalating and now were at the point where the world is overrun by zombies (more or less).
Thing about sequel escalation is that it doesn't really apply to horror. The more that horror escalates, the less scary it becomes. So much of horror is what you don't see. Knowing that a city full of zombies were outside of the police station in RE2 is far more scary and satisfying than being outside the station and realizing that the "city of zombies," is little more than killing two or three per room. Yet they continued to escalate to the point of absurdity (whoever said giving zombies guns was a good idea needs to be smacked).
Capcom needs to take a step back and realize that less is more.