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See, I don't read it as being pitched as actual found footage. I read it like someone posting the plot and setting of any other fictional horror move - they're just setting the scene:
The year is 1963, the night; Halloween. Police are called to 43 Lampkin Ln. only to discover that a 17-year-old Judith Myers had been stabbed to death, by her 6-year-old brother... After being institutionalized for 15 years, Myers breaks out just days before Halloween. No one knows nor would wish to find out what would happen on October 31st 1978, besides Myer's psychiatrist Dr. Loomis. He knows Michael is coming back to Haddonfield, but by the time the town realizes it, it'll be to late for many people...
And say what you will about Blair Witch, it was successful: I remember when Blair Witch came out, my friend's little sister believed the viral marketing and thought that it was real.
Sure, I don't believe that this was real found footage, but there's a point where you have to suspend that disbelief to get into the film. Think about Home Movie. Part of what made that movie so successful was the fact that this was "real footage" of an actual family. It makes it much more believable.
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