No, i personally think this particular genre is hot, I browsed in a library there was a good collection like vampire novels, Clancy-style techno-thrillers, westerns. The problem is only that most of today's books were written years ago. New editors have no idea what to sell now.
I'm actually working on the outline of a horror novel, I'm not sure if its gonna be my NaNoWriMo project or not. One of the things I wanna try to do is avoid the typical horror cliches that serve only to move the plot along.