I'm surprised at the lukewarm reception that several have expressed for Silent Hill! OTOH I have to temper my reaction by reminding myself that I'm also a bit of a hapless fanboy of the series.

Like many games released in this era, some of the game mechanics haven't held up so well when shown under the light of subsequent progression, but at the same time I would say it fares pretty well against games released at or around the same time. The puzzles are definitely obtuse ... bordering on problematic even (like the piano puzzle in the school! Are you kidding me!?), but at the same time they are relatively standard fare when compared against many adventure game tropes. I'd contend that there's nothing in Silent Hill approaching full on moon logic. And yeah ... combat kind of sucks, but that's also sort of the point. For the most part you're encouraged to run away rather than stand and fight (I would say that this is a common thread that unites most of the Silent Hill games).
In terms of atmosphere and setting though, I would say that very few games manage to accomplish what Silent Hill achieves. Is it derivative? Well ... that depends on how you look at it really, but it wears its influences on its sleeve, by which I mean it pays explicit credit where credit's due. Look no further than the street and landmark names if you have any doubt of that. And even despite its influences, I think Silent Hill manages to create a world sufficiently unique and unto itself (though in this regard I would say it certainly doesn't come fully into its own until Silent Hill 2).
In terms of story ... well admittedly I myself tend to prefer the Silent Hill 'side-stories' as opposed to it's main story line. The main story line is kind of "Oh so we're dealing with a Lovecraftian-ish apocalyptic death cult?" Well that's cool and interesting and all, but also something that we've seen before in various media. It's not until the sequel that the series starts approaching any sort of actual Lovecraftian(ish) mindfuckery, and Silent Hill 4 repeats this trick to some extent (and yeah I realize that 4 didn't technically start life as a Silent Hill game, but it says Silent Hill right on the tin and I feel that it successfully captures that ol' Silent Hill magic, so ... yeah).
Any hoo ...
sigh ... sorry to be that annoying dude that pops up in the Not Beaten/Unpopular Opinions thread all like, "But ... but ... I
like that game! <snivel, snivel>". I just wanted to provide some counterpoint for those that haven't played Silent Hill but might be interested in doing so.