Corpsey
bandz ahoy
this sounds very relatable. the thing of not having seen something but being scared of it because your brother or your nephew or just older kids were watching it. all of the gabber and rave music from that time were also heavily sampling these horror/sci-fi movies so that the whole thing became even more mythical.
It's that cliché about horror - don't show the monster, it's always scarier to let your imagination run riot.
Obviously those VHS covers DID show the monster, but it was a static image that you could imagine from (also ofc you were a child, you couldn't really be sure that the imaginary isn't real).
As an adult seeing CLIPS of Freddie Krueger I can see that it's all quite hokey and ridiculous, especially because he became throughout the sequels a wisecracking cartoon character. Similarly with Chuckie.
Saying that I do tend to avoid horror films not because they're scary but because they're sadistic and disturbing. I watched the infamous Terrifier 2 scene with the salt in the wounds etc. and even though it's obviously massively OTT and even sort of funny, it's still got a nastiness and sadism to it that I don't like.
Nevertheless, I did watch it, having read about it. As an adult, as when I was a kid, I'm still taking a peek at things that I know are going to disturb me. Not sure what drives that.