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In some ways it works better than you might expect it to, providing the same kind of addictive role-playing game grinding you find in other games in the genre.
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Silent Hill: Book of Memories attempts to extract the survival horror trappings from Silent Hill and put them into a dungeon crawler-losing most of the horror in the process. The experiment may inspire apprehension in the hearts of the series' fans, but it can also breathe much-needed life into something that's growing stale. Plenty of franchises can make successful departures from one genre to another, whether for a one-off side story or an entirely new spin-off series.
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