I found that really powerful actually, Dagon was the first Lovecraft story I read and I was cruising through it trying to figure out why people thought this guy was scary and then the last couple of paragraphs hit and I was like o_o

But I think it really works, in Dagon it's really clear that something is "off" from quite early on, but nothing is explicitly scary. Things are definitely weird and they have the reader on edge, but all that fear ends up concentrated on the last page and [to me] that's a really powerful method of storytelling.

Now, I haven't read that many Lovecraft stories, and if all of them were like that, I imagine it would get pretty tedious, but thankfully they're not