He was one of the main random monsters that were released during the end battle. I actually had to look twice and then went "waitaminute is that...?" He didn't speak, sadly, it was mostly a short cameo, but the design was plenty creepy.

I do think I know what you mean, but, while very different in style, I still believe a realistic take on it could look great. Would be a pretty different experience though, I agree with that. I think a realistic version would be much, much darker, actually. The ghost-train scenes alone, if played straight, could be pretty creepy.