I do appreciate the observation that the difference between horror and fantasy is evil vs. innocence as opposed to evil vs. good. It's a distinction I was always aware of, but that's the best articulation of it I've seen.

I also suspect that this is the reason I don't really like horror all that much; the essential hopelessness of the genre (not to mention the gleeful indulgence in excessive violence) is a big turn-off.

King is the exception, but King's stuff (especially the mid- to late-career stuff) tends to cheat out toward the "vs. good" much more than your typical horror; I mean, It, disappointing big spider or no, is practically textbook fantasy Battle Between Good And Evil.

(I also think this is why King is so popular generally; hardcore horror fans may love a gore-filled downer tragedy, but most folks like a little bit of hope tossed in with their gruesome.)