Yes, King Quest Online! Where picking even one wrong skill results in a completely useless character. Where taking one small wrong step sees you dying a horrible death. Where, if you forget to do a single small thing, you die. Where the game will kill you just for entering a room you didn't know you shouldn't enter. Basically, you'll spend more time dying than playing.
I think she secretly has a BDSM dungeon where she humiliates and mutilates gamers since she no longer gets her kicks from seeing them cry over her lousy games. *laughs*

Yes, we certainly wouldn't want to face the risk of failure in a game. Death scenes are humiliating and mutilating.
Seriously, the death scenes were sometimes the funniest scenes in a given game (and that's saying something). And -- without going into detail, in case the game becomes available here and it's a spoiler for those who haven't played it yet -- the death scene from KQ VI was particularly interesting.

The twin game of Harvester is Dark Seed 2, which is effortlessly better than its first part. "I have no mouth..." is also sick, but the design is not very good - play it with a walkthrough. And of course, Puzzle of Flesh, which has lots of sick sex with a very quirky sense of humor
EDIT: I really liked "Still Life" some years ago, which is a different kind of game, owing a lot to the Police Quest franchise, but of course, it isn't as oniric as these games.
Well, the Jane Jensen touch in the final quality of KQ6 is more than obvious...

I have a few suggestions
7th Guest (very similar sense of humor), 11th Hour (7th Guest sequel), Darkfall, Shivers 1/2 (much tamer than Phantasmagoria). Shivers and Darkfall are more Myst-y, though.
thought of Clive Barker's Undying, too in terms of the haunted house vibe. Similar, but less raunchy, more Lovecraftian and half FPS.
IMO. the 7th Guest games are the closest to Phantasmagoria (at least so far - this is my first Phantasmagoria playthrough). Similar sense of humor, but 7th Guest has better puzzles. Some of the anagrams in 11th hour are hard if you're not used to that kind of thing (but there are hint guides online). It was a running gag among PC gamers that the anagrams were in the game to sell hint guides.
You might also want to try Realms of the Haunting. It's not super-close, but in the ballpark. There's another game Noctropolis that kind of reminds me of Phantasmagoria. I don't really know why though, besides the fact it uses a very similar UI, is decently campy, and has FMV. It's basically Batman vs. the Occult. It's really quite good, very dark, campy sense of humor. It's not on my desk, so I'll check my closet later if you want details.
I'm playing Overclocked now. Reminds me of Sanitarium a lot. Very, very psychological adventure game for adults.
There are actually a decent amount of them out if you know where to look. Adventuregamers, justadventure and 4 Fat Chicks (recently changed their name to something else) have good reviews of them.
edit: Dark Seed 2 is one of the Giger games.

One of the things that I believe gives the King's Quest games tremendous replay are the different choices to solve some puzzles and the death sequences. Really, I would go back and find a way to kill my character in different situations, when you die the games would not pity you, they would add more insult with puns. What games nowadays makes you want to go back and see how other unusual ways you can die? I like the fact that you can get stuck and have to start over, we can make different save games so it makes the game more challenging, besides some quest were made with this in mind.
I'll be buying Phantasmagoria shortly, now I need those Police Quest games and Leisure Suit Larry with "talky" versions and Love for Sail. I'm still playing The Incredible Machine Even More Contraptions. Bring me Phantasmagoria II (with more bonus materials please) and the Shivers games that someone said they were really good.
How much work went into making this game compatible?I mean the Space Quest games use DosBox I'm sure but this one...A lot of work?

Ah I remember Noctropolis, I played it years ago and enjoyed it. The copy I had came with a bonus little comic book (graphic novel if you want to sound adult :)

I still have the Stage Fright pack with both Phantasmagoria games, but this one was an insta-buy for me!

You do?Wow. In my teen days I almost bought it, but is was between that or the King's Quest Collection,the "big box" collection.
I went with the King's Quest Collection,but with the first Phantasmagoria game here, I can play it now.

For some reason, I like really bad FMV 'games' and B/C/D or less grade horror movies. Even if it's terrible, I'm likely to be amused somehow.

Don't know much about others, but in all honesty the Phantasmagoria games aren't exactly bad. They're just your typical niche games or below average titles for everyone else.

Well, that's a nice addition, indeed :-)

not for "some reason", EVERYONE loves "so bad its awesome" (and i wouldnt even say that phantas. is so bad its awesome, that one is just awesome heheh). thats why shows like MST3K are so popular and thousands of B-Movies get released straight to video. but im with ya!

I'm going to pick this up after I finished Gabriel Knight.

I loved his Let's Play of Phantasmagoria 2. It made an otherwise boring game hiliarious.
"I heard that, Curtis!"