I watched The Blair Witch Project about 2 years ago at a house party with a bunch of my high school girlfriends. The home was surrounded by a wooded area which made the room 10 times darker when dusk fell. It was a frightening experience and I remember sleeping with the lights on after watching the film. I had never seen this style of film making before and I was intrigued. The shots were so "real" and I felt like I was right in the woods with the doomed teens. I have asked many people recently and the consensus is that The Blair Witch Project is no longer considered "scary" comapred to the Paranormal films.
Now, it's a totally different case when it comes to the upcoming teen party film Project X. This film about a party that becomes out of control can get away with using this style of filming. There's nothing strange about some one walking around a party with a camera, filming all the crazy shenanigans that ensue. The allusion of authenticity is not compromised in a story like Project X.
I am not completely denouncing the once innovative method. I still think it's a very affective style of film making. However, with the Paranormal phenomenon still running rampant and new films releasing the same "handy cam" gimmick, I am growing a bit weary.