The horror and slasher genre are indeed a joke... Shiki, as goofy as it looks, is one of the few shows that's kind of carrying the horror genre on its back. I struggled in the beginning as well with the way the characters looked and you kinda get used to it... It even starts off extremely goofy but the show gets pretty impressive once it gets going. It's one of those shows that literally uses an entire town as its playground, just for that reason alone it's worth a watch. I think the main idea behind the funky character design is to make sure you recognize characters, making it impossible to forget who is who and to keep track of who is a Shiki and who isn't. It's a pretty big cast where every character gets their time to shine. I love my gorgeous and well animated art... I would still find it hard to recommend it due to the way the characters look. In general, anime likes to go for their power ranger color designs and I agree it just really doesn't fit the horror genre. Same goes for Devilman Crybaby and Higurashi When they Cry's first season. I think Boogiepop is a show that still falls under the horror genre and specially the first few episodes were tough to follow since all the characters looked the same which was a turn off for a lot of people as well.