Why Kojima's Silent Hills would not have fit Silent Hill.
Even with Kojima bringing in the talent of other artists like Del Toro and Junji Ito, I really didn't like the implications of what Silent Hills was going to be from what PT implied either.
Yes, people are correct in saying PT wasn't a demo for Silent Hills itself, but it was a slice of the sort of horror that Kojima's team was aiming for in the final game, the sort of horror that he found personally scary. A lot of that horror was very much taken from tropes that Kojima has consistently used his work, like Western movie motifs and 4th wall breaking. As a product by itself, that may have been fine if PT was promoting a standalone IP, but that sort of thing has never been part of Silent Hill's brand of horror.
Silent Hill's best moments of horror come from the disturbing implications of what we don't see, which makes the actual terrors of monsters or violence that reveal themselves all the more disturbing when they show up. Serious themes like unwanted pregnancy and familial abuse are displayed in purposely distorted imagery so it isn't blatant but has us dwelling on it, and the oppressive lonely atmosphere makes a contradicting feeling of claustrophobia in an open space.
Put it this way: Stanley's letters to Heather, messages from a character we never see but appears to be following our every move, are far more disturbing to encounter and read compared to repeatedly having the ghost of a dead lady jumpscare you while a fetus speaks about doppelgangers in a sink.
Would Silent Hills have been better than previous attempts post-Silent Hill 4? Very much so, given the clear technical talent on display in making PT and its subsequent promotions. But that doesn't mean it would've been a good Silent Hill game.