I personally (my 2c!) like this type of horror, where the writing is clever and witty, and the paranormal reigns; magic if you will. I'm much more a fan of the bizzare, of unreality than of hardcore horror. There is a sect of horror writers out there that do nothing but basically torture and mutillation, and then they all huddle together and tell each other how brilliant they are. But it's all the same, and in my opinion, not inventive.
As for fear, it's been a long time since a book scared me; like when I was younger, The Shining scared me, and so on. Maybe we're desensitised now, who knows. Books can still chill me, however. House of Leaves I think was the last book that gave me willies in my soul.