Precisely. Pre-FC the Borg were just cyborgs and not that scary to look at. With FC and their redesign and the focus on assimilation came along this Cronenberg-like body horror stuff. Their true horror in TNG was the annihilation of individuality and the stories always dealt with this topic. "I, Borg" basically stated that the Borg as mere creatures are fine, the problem is their collectivistic ideology.
All that stuff in VOY about Seven and later the Borg children, regaining their individuality and so on, was said so much more poignantly via Locutus.