Well yea people die. But tell me, do you want to live your afterlife like them? They must be suffering quite a bit when you look at them. If there's an afterlife then I want to rest in peace, not be a rotting husk stuck in life.
Are the Redeads the living dead? I don't think they are. I think they're always like that, because in OoT, all the residents of Hyrule Castle Town escaped to Kakariko Village - they weren't turned into Redeads.
And speaking of Redeads...*squeals and hides* I have ALWAYS been freaked out by them. The moaning, knowing they're near, and then the shrill scream that freezes you in your tracks...*shudder*. And then when you kill them, their corpse stays there, and even though I know they won't get back up, I still wait for them to disappear. Even so, the Redeads in OoT still aren't as scary as the ones in the sequels. It's funny when they dance in MM, as well.
Stalchildren terrify me as well. After finding out about them, I avoided going out to Hyrule Field at night as a child whenever I could, and if I didn't have a choice, I'd stay in the river till dawn.
They still don't compare to Dead Hand, though. I was definitely not expecting a grotesque, mutilated blob of bloody pale flesh wriggling towards me as I was clenched in an equally bloody and pale hand...and its eyes are empty sockets and its mouth opens really wide (for some reason, I find big mouths absolutely horrifying). And when it dies, it twitches. D:
As for MM, I haven't really played it too much, but I was so happy when I found out you could skip the mask transformations. I couldn't stand watching Link go through so much pain. The game itself is also incredibly unnerving, because throughout the whole game, you feel like Termina is in denial (well, it is, really), and that there's a constant undercurrent of fear and uncertainty. And, of course, the moon.