If you want one of the most unique and touching (it's quite empathetic and puts you firmly on the side of the "freaks") "horror" films ever made (it's more accurately a drama), watch Tod Browning's 1932 film, Freaks.
It's one of my favorite films.
The wonderful performances by Olga Baclanova (Cleopatra), Wallace Ford (Phroso), Angelo Rossitto (Angeleno), Johnny Eck (himself, the Half-Boy), Daisy & Violet Hilton (themselves, the Siamese twins) and Harry & Daisy Earles (Hans & Frieda) stand out.
The film was banned in England for 30 years and pretty much destroyed Tod Browning's career (the director of several Lon Chaney, Sr. films and Dracula). The film is notable for having real people with deformities as the cast (and they're the heroes). 30 minutes of the film, including much of the fates of the "normal" villains, have been lost to history (it's now only an hour long). The film helped bring about the Hayes Code.
"You'll laugh at them, shudder at them; and yet, but for the accident of birth, you might be even as they are."
"We'll make her one of us! A loving cup! A loving cup!"
"We accept her. One of us. We accept her. One of us."
"Gooble, gobble. Gooble, gobble."
--The famous scenes--
The Wedding Feast: http://www.youtube.com/watch?v=_c43Sa4dztk
The End: http://www.youtube.com/watch?v=sALWUsvL4X4