Tonguez:
Your example torpedoes the system. A CR5 dragon, we assume, is facing a 5th level party. Using DMG standard characters, the cleric needs a 19 to make the save, and all of the other PCs need a natural 20.
That means that, once magnified through the three saves, the cleric has a 72.9% chance of suffering trauma, and the other PCs have over an 80% chance. This is coming from a monster of equivalent power.
Even without tacking on large modifiers for type, the DCs scale too quickly. The DCs scale at a rate of 1/level, so to keep up with that the Will saves need to advance at 1/level. Not a single class can match this. Even when magic is thrown in, only the good Will save classes can compete: and only just. The addition of an arbitary 5 'phobia factor' and type modifiers is adding insult to injury.
Even leaving this aside, this system is something of a nonsense. Using the scales here, a Grey Render has a fear DC significantly lower than a humble Imp (19 vs. 25). Even a CR1 lemure has a DC of 26 (i.e. impossible for a 1st level party without a natural 20).
Neither do the DC modifiers make sense. For some reason, Giants have a Horror Factor of +10. Why? If it because they are big, it should be a size modifier. If not, then it makes no sense: most giants are, by definition, simply larger versions of humanoids.
The size DCs are also too small. Should the difference between a Tiny Humanoid and a Tiny Beast really be greater than that of between a Tiny Humanoid and a Huge Humanoid?
Essentially, this is a fine system in theory. Unfortunately, it has major stumbling blocks. The DCs of certain creatures are so high as to crush PCs of equivalent power. The size DCs make no sense in relation to the other DCs, being far too small. Some of the type DCs are illogical. Even the CR DC can be a bone of contention: if an 8th level fighter and a 9th level fighter are equipped identically, how do the PCs tell which is stronger (and hence more frightening?).