After watching The Gallows, I can safely say that the found footage genre has become stale. There's no tension or suspense, it's just cheap jump scares (poorly thought-out ones I might add).
Most Found Footage horror movies aren't meant to be good horror movies, or good movies in general, they're made for profit. They might be bad, but because they're so cheap, they're guaranteed to make their budgets back on opening weekend.