I've been listening to Shadow Over Innsmouth recently -- they have a really lovely version for $6 on Audible -- and I really like Lovecraft's style, though I agree he wouldn't be appreciated as much today.
His clean telling really provides a stark contrast to the horrors he's supposedly not showing, and if you get into the groove with the story, it's got a very compelling feel overall. For instance, SOI *starts out* making it clear that the protagonist survives everything, which normally would cut all the tension out, but it's only at the end that you get the real twist. Very effective.
But, yes, I completely agree that he'd be eaten alive by modern editors. Possibly not without reason, but it's worth saying that ALL literary rules can and have been broken to good effect at some point or another.
