So… It depends which version of the “shine” power you refer to X) Mind you, I am not an extremely deep King fan versed into his full lore. I just casually read some of his stuff.
For your first paragraph, I have to say it is only true if you refer to the sequel novel, “Doctor Sleep”, where we do see use of psychic powers that have not been used very much if at all in modern fiction (the famous “box” use for example). But in the original novel the “shine” is just… your ordinary psychic powers that every horror author of the time used to write about. Think Matheson’s Hell House for example. The original “shine” of the novel was not very innovative, it was just a reuse of all the IRL mediumnic theory and ghost-hunters explanations that had been popularized by fiction. It was only in the extended King universe, and by the sequel novel, that it got fused with other parapsychological abilities and started becoming more of its own thing.
[Mind you I don’t know what you refer exactly as by the “Shining” power. Do you strictly refer to the power within the Shining book and/or its sequel? Do you open it to other examples of the shine in the Kingverse? Do you open it to other cases of psychic powers which were not originally the shine but retrospectively became it as the Kingverse built itself? As I said I am not a big expert of the Kingverse, just an occasional enjoyer of his works, so I don’t know the delicate intricacies of his greater multiverse worldbuilding.]
About the “creation of entities like the Overlook”… I don’t quite agree. For the psychic vampires, if I do recall well it is said that precisely the True Knot were people that had the shine themselves, or that they can welcome among them those who have the shine, “convert” them, like two side of the same coins - I think the metaphor of cannibalism was used at some point? But my memory is very blurry… What is not blurry however is the fact that in the original extended version of the Shining novel it is made very clear that the Overlook-entity was not created by mankind. It was there as soon as the construction began and likely seems to have been connected to the very ground the hotel was built on. Not Kubrick-style Indian Cemetery though, as we are never given a reason why the ground was cursed or something evil dwelt on the ground, but it definitively manifested within the building itself as soon as the foundations were laid. At least according to “Before the Play”. “Before the Play” was then cut, so it technically is not fully canon anymore… Which does lead to the assumption that the Overlook is rather a sort of hive-entity born of the accumulated evilness in one same place that somehow got a sentience. That’s a type of explanation AHS used for its first season, to explain Murder House (before they did that whole shared canon thing, which was… not a good decision on their part).
But nothing tells us that the Overlook entity was born of the shining power, absolutely nothing. The Overlook-like Rose Red manor in the titular mini-series can be considered born of a “shine goes wrong” because it is about sort-of psychic vampires in the end? And given later material of the King universe, you can choose to interpret it as being shine gone wrong? But Rose Red is sort of… it’s own weird case. The Overlook’s very cursed existence seems to be tied to this other rule of the Kingverse that some places simply are wrong, with no reason, just because the universe has something corrupted or bad there. Not because great evil entities built their lair there and tainted the ground forever (like in “It” or “Salem’s Lot”), but just “because”. It was this rule King used to have and talked about, that sometimes the best horror is left unexplained, making it more disturbing. Why is there a tiger in the bathroom or a finger out of the sink? We would love to know.
In many ways it is like the other “creepy hotel” classic of King, “Room 1408”. Why is there one room and one room only in the whole hotel that is cursed, and/or haunted, and/or evil? We don’t know, we won’t know, and that’s not the point. Not knowing, not explaining, immediately turns an ordinary horror into more of a cosmic one - which is a genre King always deeply loved. [Though fans noted that the presence of the color orange in the story might imply a connection, likely not willed but rather subconscious or thematic, with Pennywise and his Deadlights. But early-King kept dropping hints and connections linking the Deadlights to a lot of other things without every following up on it, so it seems more of just his recurring ingredients and general vibes at the time.]