They died in the car accident. The officer died the same way.
Silent Hill's hells are very individual, and it's shown that many wanderers in them are experiencing different realities. In SH3, "You think those are _monsters_ you're killing?!?", in SH2, the burning woman sees everything as constantly aflame, while Harry (SH1) and james (SH2) are seeing the rotted ghost-town - which is the portal to, origin, and symbol of the wrong / sin that has set the events in motion.
I've often thought the SH games contain a deft critique of certain forms of religion, both eastern and western - but that's another thread. Enough to note that the hells are wrapped with a hellish but less deadly skin which fades or is torn away under certain intense circumstances, letting the more heinous and terrible of the denizens move around and act. Everyone, everyone, in Silent Hill is guilty, though, protagonist or otherwise. There's no reason to be there otherwise. Parental guilt is a big theme in SH narratives.
It's true that in the games the character has a chance of getting out - but also true that that's only one of several possible outcomes; Rose wasn't tormented enough to deserve permanent punishments in the darker world, but she drew the "Limbo" ending - the grey one instead of the sunlit one. Her rash entry into Silent Hill doomed her adopted daughter, and herself.
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