Earthbound by way of Trout Mask Replica.
Let's be clear: Though there is a good JRPG skeleton in here with innovative mechanics and it's a good deal more challenging than Space Funeral, the other "surreal vaguely-terrifying RPG" du jour, this still isn't a game you'd play for "fun" in a normal RPG sense. The plot is deliberately incoherent, with nearly every character speaking randomly generated senseless poetry. I beat it in about 3 hours, and that's from choosing to "grind." (I say that in quotes because there isn't XP or levels to speak of.) There's one town that sells equipment that never changes, so once you've kitted out your characters there isn't really much need to go back; there are hidden items and abilities you can get by solving psuedo-puzzles, but they're largely not necessary. Once you've beaten it, there's nothing else to do short of finding those aforementioned hidden items that are now useless because, well, there's nothing else to do.
But what makes Hylics so compelling is just how committed it is to its atmosphere. The graphics are an almost disorienting mix of claymation, sprites, photography, and video all filtered through a semi-glitchy aesthetic. The music is loose and spare, mixing excellently with the visuals and "dialogue" to create a dadaist, alien feeling that still vaguely rhymes with tropes and structures of typical RPGs. Those tropes and structures are used as guides to lead you through exploring the world, giving just enough familiarity to not overwhelm you in sheer bizarreness, but still not enough to really make sense of what's going on.
It's weird and stark and intentionally opaque, but it's an extremely original aesthetic experience, and I'm very glad I played it. If you've got an open mind about games, or just really liked Space Funeral, Hylics is worth immersing yourself in.