I never really saw WoD as a horror game, actually. I saw it as more of a game where characters embrace darkness . . . to a point. I guess WoD is closer to a game in psychology than horror, which, I suppose could be its own form of horror.
Call of Cthulhu is the original horror game but as Crothian accurately stated, how scary is a game when your main symbol comes on plushies, is being endorsed for president on t shirts and has coloring books associated with it? (As a slight derailment, as much as I love the old 60's James Bond movies, Austin Powers have kind of ruined their credibility at this point.)
As far as sheer horror goes, well, let's face it - it really is hard to replicate horror in your living room when players are sitting around with their munchies and have the ability to do side conversations about Fantasy Football or even how much better Cthulhu WOULD be as president or whatever.
This is why Dread is the only game that I have found that actually does at least TRY and replicate some horror. You, the player, share, albeit slightly, with your character. The nervousness and tension you feel from pulling from the tower is one of the few things that actually can bring you to that same horror level.