I liked Silent Hill 2 the most, because I rather dislike the whole '
cult' idea that pops up in the other games. I like the idea that, for James, Silent Hill is a personal hell that is calling him to face the darker truths about himself and his actions that he wasn't strong enough to consciously face on his own. Many of the monsters that roam the town symbolize his guilt, wish for punishment, or sexual repression during his wife's three-year-long illness. I was actually pretty upset that the movie - which was terrible in a lot of other ways, I know - used "
Pyramid Head" out of context. He represented all of the above. He was an executioner, a person who represented James' masochistic need for vengeance against himself for his actions... not only James' guilt and anger, but also the sexual deprivation that he endured - which was displayed many times when Pyramid Head was shown killing the provocatively-dressed nurses.
As far as the endings go, I felt the water ending was most appropriate. Just my opinion... but honestly, how could you continue to move on after seeing the true depths of yourself in a place as terrible as Silent Hill? That sort of eye-opening experience isn't one that you can backtrack from... and just continue to live life normally afterwards.