I thought FEAR was garbage. Didn't find it scary at all. Thought it was kinda corny too. Did not enjoy it or find it at all interesting. Regarding the story, I found the Dead Space story and characters to be more realistic and down to earth (just some engineer in the wrong place at the wrong time, trying to survive) than FEAR (some lame ass story about super soldiers working for some top secret paranormal investigation branch of the government... corny and lame in my opinion). Being just some normal guy in the wrong place in the wrong time adds to that sense of realism and fear.
Dead Space, on the other hand, had my heart pounding constantly. And it was extremely disturbing on many levels. And I found it much, much funner. No matter how many times you play through the game, you seem to want to just play through again and again (even if you have 100% achievements!). FEAR had me bored and completely not interested after only a few levels.
Just my opinion.