Film was scary too at one point. And before that, books. The media became more sophisticated over time, and the moral panics always followed. Yes, this “new” media is interactive and immersive, but there has never been that much compelling evidence that increased immersion actually changes matters that much.
I think VR may be an interesting test case in the near future as it is immersive enough to potentially be more traumatic and more unsettling... but that still doesn’t mean playing GTA or Doom increases your odds of going on a shooting spree.
The fact that you can make potentially more impactful stories using more modern media seems neutral to me. But to be frank, you really desperately do not need modern technology and fancy graphics to make an incredibly emotional, impactful game. Just look at indie games like Undertale and Celeste.