It's one thing to read about it, it's another thing to actually see it. I didn't think it was terribly scary, but it made me uncomfortable, because it was uncanny. Even more so because you couldn't quite focus on the face, you had to read the text and felt the gaze in the corner of your eye.
Same thing with Natsuki. The necksnap-LE-EVIL-SMILE-part was ridiculously retarded, but the part that had her eyes and mouth blocked out was unsettling. Not scary, just unpleasant. Kinda like in this video:https://www.youtube.com/watch?v=McFRonD-sjg
That stuff is effective, I think. As long as you don't go complaining that it failed to do something that it probably did not mean to do (being muh scary creepypasta)
That said, I liked DDLC but it wasn't super-amazing, and like the umpteenth meta-game to release in these past few years, and didn't bring anything new to the table. It was free though, so that's fine.