In Lovecraftian horror stories, since what seems to be insanity is actually insight into how the world really works, couldn't we replace "insanity" mechanics with some kind of "clarity" or "insight" mechanics?
This blog post is my long way of saying "I don't think so."
Before we get started, as always, please don't take my comments to be about the advisability of a game design direction. I have nothing to say to game designers; they have bigger problems to worry about than anything I could raise. As always I'm really talking about campaign construction within constraints of group decisions, what game you've decided to play, etc. If you're going to play this type of game, here is my advice. I'm definitely not saying anything about what type of game should be designed or selected. People who say "well, let's just not do Lovecraftian horror", cool, don't do it. Nothing that follows applies to you.