This decision was made fairly recently.
I think RE5 was made, like so many other games, to appeal to as many people as possible. And it got watered down in the process. Tries to be survival horror, and tries to be third person shooter, and ends up not doing either one particularly well. And no it's completely removed any survival horror elements.
Honestly, I think that decision was made because younger people unfamiliar with the franchise won't know any better. They won't know that it went from this amazing survival horror game to a generic shooter. So they're fine with it.
The old fans want RE to stay survival horror, and Capcom is like fuck you.>Capcom, make Megaman games>Fuck you>Capcom, make Resident Evil good again>Fuck you>Capcom, make fighting games other than Street Fighter and MvC>Fuck you>Capcom, bring back old franchises>Fuck you>Capcom, make a new DMC>FUCK YOUUUUUUUUUUUUUU
Never have I seen a developer so actively refuse to listen to their fans.