Was there really so much combat in The Room? I remember it being somewhat in line with the other games. There are quite a lot of enemies in SH3. Quite a lot in SH1 as well. SH2 is kind of the odd one out. Not so much because there's nothing to fight, but because it's so easy to avoid everything. In The Room, you could neither outrun nor kill its most infamous enemies.
I thought the Room was a pretty cool game actually. Just like in SH2's case, the more tangential connection to the cult of SH made for a more interesting story I thought. SH1 and 3 are really convoluted and goofy. I also really enjoyed the way the room in "The Room" evolved. Very cool concept.
Still, it was probably too much SH for so few years. By the time The Room came out, more traditional horror games were on their way out. Probably because RE4 ushered in the era of tight controls and mechanics.