I rented it and really liked it. It's really short so paying $60 or even $40 is completely out of the question in my opinion. Once it is a greatest hits game at $20 then there is no reason for anyone not to try it.
It really reminded me of a next-gen Resident Evil 4, even more-so than Resident Evil 5. And believe it or not, this game can actually be kind of scary in some points. The atmosphere is really well-done, but some technical short-comings (especially with the animations) keep Alan Wake from being even in the discussion of game of the year.