If you want to do a horror-style shadowrun campaign, scrap points 1&2 entirely, hit yourself with a phonebook, and then pick up Universal Brotherhood - Missing Blood, Bug City, and Renraku Arcology - Shutdown those are the quintessential horror stories for Shadowrun, so base it off something like that, instead of intentionally screwing one set of players under the pretense of horror. There's a difference between horror and "HA! Sucks to be you!"
Hell, you could just string together a few missions from the last season, including Brothers United and Romero and Juliet, and have a solid horror campaign. Also remember that what makes horror hit hard is when it is limited in scope. The Ravenloft setting ceases to have that much of a horror aspect when you've been there for a while, and are used to it. But going through a normal campaign, and then you stumble upon this little place called Barovia...