So far I am always running out of ammo and generally being scared out of my wits. If this never changes then I will probably quit now. Shits too scary for me so far. 

Nope, the close-range combat shows off the game's mechanical flaws and you are much more vulnerable. You get better weapons and plenty of ammo eventually- you can save ammo by using the torch as a melee weapon and searching bodies. In most cases you're better off avoiding the enemies and focusing on defending towns/completing objectives.

This add-on is supposed to challenge you; make you switch up your tactics. You don't consider that fun?

I never had a problem with ammo..I often found myself have too much of it so I found ways to waste it. So...yeah I did.