I mean, not inherently. There very well may be another cause that wasn't the craftsmanship at all. That said, I get your point, awful *can* be objective. However, the way you're using it, to describe a video games direction, isn't. That's purely an opinion, and you can't say whether the way a video game took itself gameplay wise was objectively awful or not, because that's not something that can be proven.
Per Google, which take with a grain of salt, - Survival horror is a subgenre of video games inspired by horror fiction that focuses on survival of the character as the game tries to frighten players with either horror graphics or scary ambience.
My point is, it says NOTHING about it *Needing* to be Action/Adventure. And, even if it did, games mix genres all the time. Just like pop music. Survival Horror can have other elements. Rather than your insipid Dog and Cat example, how about use music. Pop and Punk to make Pop Punk. Or Electronic and Swing to make Electroswing. Regardlesss of whatever else it is, it's still Punk. It's still swing. It just also has other flavors. Survival Horror can have other flavors too, and still be survival horror. The Evil Within and is a VASTLY different game than Slender Man, is a vastly different game than Silent Hill: Homecoming. All of them are survival horror.
Experience is everything and it ISN'T a fact. What Resident Evil is, has two parts. The objective and the subjective. Objectively, it's a video game. Made to be a horror game. Where you play through a story with the end goal being to survive a sort of infectious, life or death situation. Nothing is patently false in this statement. Now...The SUBJECTIVE is a whole lot bigger. To Some, RE is about zombies. RE to them will ONLY ever be about zombies, so 4 and 5 are out. To some RE is about the characters and their growth as BOW's become more common place in the world. To them it's about the story of how science can change the world for the negative. Their opinion of what RE is, doesn't invalidate the original persons opinion. Fact is, people play it for different reasons. I'm absolutely sure I play RE for a different reason than you. Therefore, what Resident Evil is, to me, is going to be different on the subjective level. So no, for me Resident Evil 4 didn't change what Resident Evil was about at all. The gameplay can change over and over, as long as they keep the central theme *I* play for, then to me, it won't be different. That's why I hold Umbrella Chronicles in such high regard. To me, it's a true blue RE game, and one of my all time favorites. But by your logic, that game ALSO isn't a real RE game, because of how much it abandons from the original game.