No it didnt. Nothing touches what Resi1 and 2 where in their prime.
Since Resident Evil 4, it's just another game with the same title. It transformed into a shoot em up action game with almost non-existing horror and non-existing morbid atmosphere. 4 actually carries with it what started to ruin the series since 3. Weaponry and action began to be the primary focus of the series after 2. The only thing that saved the series was a new control scheme. The only thing I welcome from 4. Having a ton of weapons in my inventory, being able to find bullets easily and being able to kick away any group of enemies with one hit regardless of size as if they were puppets isnt what I call "survival horror". There were times where I was surrounded by 4 normal ganados and 2 gigantic armored ones. I shot one on the head and performed a melee. They all fell 3 meters away from me as if I kicked weightless midgets. It started to get annoying especially when the enemies had weapons including machine guns. It played like a faster Splinter Cell minus the stealth and complicated controls. The music started well and became action too. I thought I was controlling Rambo or Chuck Norris.
Wow! I couldn't have said it better. Resident Evil 4 was a great game (in its own way), but it wasn't the survival horror game I loved with part 1 to 3. The atmosphere in part 1 and 2 were in a league of its own (well maybe Silent Hill is one of the games that are on the same level, but the two aren't directly comparable IMO). I really miss those two games. If Capcom would make another Resident Evil akin to the first to parts, I reckon they could turn up the graphics and gore even more, due to small rooms, fewer enemies, darker and more gritty setting.
I'd call RE4 horror-action, not surivival horror.