Melee in modern horror is generally a nightmare to retain the horror in.
The fundamental problem isn't even dodge - it actually works pretty well for what it is designed to do, even if its too forgiving.
Rather, a melee focus inhibits the fear of the approach. Monsters are supposed to be scary, your supposed to want them as far away from you as possible. But what they've done is created a system by which its usually safer and more resource effective to be closer to the monsters. Even on Hard, the enemies have a habit of patiently waiting their turn to attack - if your surrounded, they'll do some stupid bar-fight spin and push to knock you out of being surrounded. While annoying in so far as focusing down threats, its not actually any more dangerous. The game even actively encourages you letting yourself get surrounded - you can dodge another attack in the middle of a combo if your not spamming the mouse, letting you start a new one on the new aggressor, while preventing the guy you were beating on from getting his end of combo attack in. Even if a new group of enemies shows up mid fight, they amble in at the same leisurely pace, there's not much difference between their idle movement and their coming to kill you movement, so you've got time. The only thing that can kill you in melee combat is a lack of patience.
However you slice it, you get more powerful and capable of defending yourself the closer the enemy gets. Ranged enemies are paradoxically more dangerous despite their low damage just because your guns suck and they might be far off, and you have to expend resources in the form of ammo, and/or health if they get a shot in.
Contrast this to Dead Space - allowing an enemy to get close is a terrible idea, they'll start dealing a lot of fucking damage, stun you, or pull you into a QTE with some guaranteed minimum of damage. Your melee is only of limited effect, they'll start blocking if you abuse it. You're forced to start improvising, using kinesis to throw the first thing you grabbed to stun them a moment longer or pop stasis if you got a charge, and buy time to fall back. There is never a situation where you want to get very close. And they will do everything they can to get very close, very fast, from their dead sprint rushes, to leaping, to venting closer to you. Being low on ammo becomes scary because you know if you're out, they will get close, and it will not go well.
