I'd be ALL IN on something like this. Give it an Amnesia, SOMA, Cry of Fear, Slender, FNAF, *insert other good horror games here* feel and it could potentially be AMAZING. They'd still have to 'reset' after every episode though. Unless having Courage all by himself would be the point? I suppose that could be good but if they permadeath Muriel & Eustace I'd be forever sad. Maybe not so much Eustace but Muriel for sure. lol.
I'd like to know where your getting your information though because I haven't heard anything like this. Unless your just throwing ideas out there and/or speculating?