Actually, the Pyramid Heads were created by the Red God, Zuchilbara(sp?). They're a manifestation of the guilty and violent frustrations of all the men in the world, and James from SH2 isn't the only one to have one either. Every person in the world is said to have their own designated Pyramid Head. James's was only around because it was trying to help him get over his beloved wife. That and destroy Maria, for she was nothing more than a seductive demon of the Silent Hill world, created from all the pent up, left over love and longing for James that his wife had collected up when she had died as a restless spirit of guilt.
Oh, and if you've played SH3, you'd know the story about the two gods, the Red God: Xuchilbara and the Yellow God: Lobsel Vith (Also known as Valtiel, that were created by God, or Samael). In the third game, near the end, at the church, there are several pictures up on the walls. If you go and investigate them, you find that they're illustrations along with description of how their 'God' came to be. Here's what these panting said on them:
1. Origin
In the beginning, people
had nothing.
Their bodies ached, and their
hearts held nothing but hatred.
They fought endlessly,
but death never came.
They despaired, stuck in
the eternal quagmire.
2. Birth
A man offered a serpent to the
sun and prayed for salvation.
A woman offered a reed to the
sun and asked for joy.
Feeling pity for the sadness that
had overrun the earth, God was
born from those two people.
3. Salvation
God made time and divided
it into day and night.
God outlined the road to
salvation and gave people joy.
And God took endless time
away from the people.
4. Creation
God created beings to lead people
in obedience to Her.
The red god, Xuchilbara;
the yellow god, Lobsel Vith;
many gods and angels. Finally,
God set out to create Paradise,
where people would be happy
just by being there.
5. Promise
But there God's strength ran out,
and She collapsed.
All the world's people grieved this
unfortunate event, yet God
breathed Her last.
She returned to the dust,
promising to come again.
6. Faith
So God hasn't been lost.
We must offer our prayers and
not forget our faith.
We wait in hope for the day when
the path to Paradise will be opened.
From these hints, I had actually come to the assumption, thata the cultists were wrong, but correct as well. =D
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