Personally, I think that'd be considerably less scary and more amusing. The camera quality, I can live with, and from the looks of it, there was even the faintest traces of a subplot. On the other hand, the overall feel of the trailer made me think of a horror movie spoof, rather than an actual horror movie. It'd make a pretty entertaining film in American theaters, even if only for its comedic value.
Nice Signature, by the way; BIG fan of Edgar Allen Poe.