Please, no. Evil Within 2 sucked donkey balls, and part of that was because of the completely unnecessary open-world that felt unfinished and added nothing to the overall story. Generally, open-world is not a suitable concept for horror games since it takes away a lot of the scare factor if you let people roam freely and do optional side quests and so on... It makes the player feel relaxed and in control, which should be the opposite of what horror game developers want to achieve.
All subjective really, just because you think openworld has not place in Horror does not make it so, fact is that many fans such as myself thought Evil Within 2 did a great job blending openworld and horror together, there is something great about having to journey into a horror filled world to scavenge for ammo and weapons that will help you out in the longrun, I loved exploring and dealing with Anima (blackhaired ghost woman) while I was looking for supplies and doing optional quests to get better suited to deal with the horrors to come, openworld takes NOTHING away from the horror IMO when you actually stop to to consider that as I bought up with Anima earlier you still have to deal with tight spots and elements at certain points while exploring that make the game tense and horror driven like when you stuck in a house with her.
So in short I do not agree with a player feeling "relaxed and in control" given that Evil Within 2 has many elements specifically designed such as Anima,Chainsaw lady, and Pyro enemies that makes you stay on your toes and makes you venture into a world you know are filled with these enemies just to get better supplied to deal with them and even then your journeying into that world at your own peril given the smart and dangerous enemies that frequent such a world.
RE3 is a world that could definitely benefit from this type of gameplay since unlike EW2's beacon world it has a actually established city to work with that canon wise is filled with the most dangerous BOWs Umbrella had produced up until that point so imagine doing sidequests as jill but having to go into a Hunter and Licker infested mall or a warehouse with a relentless Tyrant inside to get the items you need or to save a NPC that will help you gain a new weapon, if done correctly that could truly make it work pretty well given Racoon City's big and dynamic established world.
Having said all of this I'm not saying I 100% want this, in fact I would be just fine with a RE3 simply being made in the vein of the RE1 remake with updated graphics and a few new elements added, but I'm pointing out that I would also be ok with a openword version should Capcom decide on this and I would be ok with it if done right for reasons I listed above.