fucking hate this effect, but SOMA and Outlast did it right.
SOMA
1. you are a robot stuffed in a diving suit, thats been rotting in an abandoned ocean base for years, it actually makes sense that your vision is compromised by shitty lenses
2. the effect is subtle most of the time, it ramps up when you are freaked out or damaged.
3. in the sections you are human the effect is almost entirely gone except for the parts where you experience severe headaches from the brain hemorrhage, perfect because thats what looking at that garbage feels like.
OUTLAST
1. the effect is one when you use your shitty camcorder, because its a shitty camera with shitty lenses, makes sense.