So, like most horror fans, I enjoy me a good slasher with a crazy killer every now and then – ala your HALLOWEENs, PSYCHOs, and FRIDAY THE 13ths. But the most recent Renegade Cut video MANIACS AND PSYCHOS – MENTAL ILLNESS IN HORROR FILMS does an amazing job talking about the dangers of media's – and especially horror media's – conflation of "psycho and maniac", as well as the demonization of the mentally ill in general (who, as the video points out, are much more likely to be victims rather than perpetrators of violent crimes).
Even better, the video's narrator – Leon Thomas – is also a horror fan, meaning he comes at this topic from a fan's perspective. So while he is obviously critical of horror media's portrayals of the mentally ill, and how they can – and have – affected official policy and public perception, he also understands that enjoying a movie with problematic elements isn't inherently endorsement, and that there's always going to be a level of exaggeration when telling a story, including horror stories.
So instead he states something I'd consider pretty uncontroversial: that it's okay to enjoy media from the past that may have outdated views on mental illness, as long as you a) don't internalize its messaging, and b) that future films don't fall into the same stereotypes of the past. He even namechecks recent films that do a better job of implementing mental illness into horror narratives successfully, such as THE BABADOOK and this year's RELIC.
Anyway, check out the video, and if you enjoy it, check out Renegade Cut's other work as it is all top quality stuff!