Agreed: 70's & 80's stuff is much better.
What I considered scary:
Evil Dead (original or the first one)
Nightmare On ElmStreet (first one)
Exorcist (when I still believed in a god)
Claire Denis' Trouble Every Day (there are a few versions, but this is the better one).
Also, if you can find it, I recommend Nekromantik (one, or two). It is German, but it is similar to what you want to do (an all encompassing horror film).
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