One of the playable characters is a werewolf who can take a canine form, and can be defeated in battle like the rest of the cast. However, he canonically survives.
One of Arakune's special moves has a large, hairy spider descend from the ceiling to attack his opponent. It's not very realistic looking, but even as someone who isn't arachnophobic I found it a bit creepy.
The character Azrael talks about his opponents as food, whether or not he actually eats people is unclear, but it does not happen on screen or in the story.
Not officially depicted onscreen, but the concept of incest and inbreeding is part of the game's story in several ways. One of the main characters has a violent rivalry with his brother, with incestuous undertones. Another character's family is stated to have inbred with each other.
I'd say ultimately bittersweet on the side of hopeful, but there is irreparable damage done to get there. Several sympathetic characters, including two of the main protagonists, suffer debilitating losses.