THIS WAS FABULOUS! This approach to fixed multicam is all too rare - the early Alone in the Dark engine games had beautiful painted backgrounds, but the main character was in full 3D. The closest I can think of to what you're executing here is a game called 'Leftway', which was interesting, but obviously not quite as ambitious as the full-colour paintings you were attempting.
Atmosphere was creepy, the visuals were great when not placeholder. The rotational input really needs another few sprite directions to make it clear what's going on - or alternatively you could switch the input to camera relative and I think you'd get away with four sprite directions. I liked the writing, the content, the style, but I felt as though there could be a greater emphasis on brevity...! The long periods reading sorta interrupted the pacing of the game.
Good stuff! I'd LOVE to see more. If you're interested in pursuing this, please let us know at the Fixed Camera Appreciation Society, I think folks there would be very excited by it. I definitely am!