As funny as it was... its nothing like the game. it was a good use of the concept i guess but for the sake of the viewers I'll explain the game.
About the windows, you have a point but there is supposed to be some sort of hex on the whole apartment building (note, not a house) so I kinda see it as it was pulled into a different dimension so even if he did break out he wouldn't be in the world he saw outside. Once you get outside of the apartment you are still trapped in a nightmare world.
Another point is in the game Joseph, the person who was in the apartment before Henry, tried to break through the wall and he wasn't able too. I realize that's a weak point because how are you able to see Eileen through the hole however I feel that it should be noted that it was "tried"... and he's on the third floor he'd die if he jumped out the window.
Also the way he was chained in there from the inside is because Walter is a ghost-demon thing. Some points of the game are kinda lame but I enjoyed playing it. Its not as creepy as disturbing in some parts and the only thing that scared me is when I didn't notice a monster was around the corner.
Either way details aside I don't mind the "low quality" animation because I know its not easy to animate and you get your joke across anyway. I liked the whole "made in Taiwan" chain idea.