I can't believe I missed this thread. I'm glad this was bumped up. What a beautiful write up OP.
I remember so vividly that entire sequence. As a matter of fact, that entire torture sequence is forever with me, literally. I refused to give in and eventually I resorted to rubbing over the circle button back and forth extremely fast using the top of my fingers, directly above the nail, right below the first knuckle. The edges of circle button started to peel off my skin, so now I literally have scars on my index finger, middle finger and ring finger on my right hand. It sounds so lame today, but that sequence was incredibly intense and I genuinely felt for the moment at the time.
It's a moment in gaming that will never be surpassed for the sheer brilliance of it and how it truly makes the player and character one.