"I have a question - I can see myself liking something like NMH but more surreal and with a more serious atmosphere. Is killer7 like this at all (haven't played it yet)?"
I'll try to describe it. Please avoid reading Wikipedia cuz it spoils the game's mysteries immediately.
killer7 is on the same weirdo spectrum opposite of NMH. Whereas NMH is a "flashy" and "in your face" action title, killer7 is a "moody" and "in your head" adventure title. The story was developed by Suda and Shinji Mikami, and the game has a considerably darker, more serious tone than NMH. k7 goes for the bizarre in the creepy/unsettling/disturbing sense. Being an adventure title, the presence of the story is much thicker here as well. Myself and others here fell in love with the story (rare occurrence) because it lacks the lame MGS-style drama about "beliefs", "emotions", "motivation", "doing the right thing", etc., so in effect we ended up taking it seriously cuz it wasn't your everyday video game cheeze. It was something... else.
I personally interpret the game as a remix of the classic Resident Evil mechanics. k7 is 1) a light gun rail shooter and 2) an adventure game. When you think of the actions in RE1, theres 1) 50% terrible walking and 2) 50% terrible aiming. k7 shakes this by going 1) 10% oversimplified walking and 2) 90% reliable first-person free-aim. Walking only involves pressing (A) to walk forward along whatever path you're on. Branches are selectable plus there's a 180-degree turn. When you get down to business you toggle into first-person rail shooter mode (like switching to bow & arrow mode in 3D Zelda at the press of a button). Since you can walk back/forth, you essentially decide where to stop and do your target practicing. The enemies (insane zombie things) act like rail shooter enemies in that you want to shoot them before they get too close, and aiming at weak points is emphasized (instant kills). Don't let it cross your mind that you should dodge or run circles around an enemy--all the serious business is taken care of just fine in the first person mode (unless thou sucks). The adventure portion is much like RE's, with more interesting Suda-brand visuals: running into obscure puzzles, finding keys/switches, using your characters' special abilities, and picking up bits and pieces of story information.
Story? Not like other cherished game stories. *cough* Metal Gear Solid *vomit*
Cloned super soldiers fighting over giant robots? give me a break.
Style over substance? Definitely. How much substance? More than the classic Resident Evil titles.
You can aim at what you want, and you don't move like a blindfolded tank. k7 is a smoother, more direct experience.
And as an extra remark, there's no illogical healing items/mechanics. No herbs, rations, roast beef, or first aid kits. Only blood.
It's one of the minor details illustrating killer7 isn't set in reality, it's set in un-reality.