I finally got around to playing the demo a few days ago, and I have to say that I was pretty disappointed - which is kind of saying something since I had pretty reasonable expectations. I was expecting a "Fable on steroids" type of experience; as in, a light-hearted action-based RPG with decent exploration. (I'm going to be making a few comparisons to the Fable series because these two games have a few things in common, making Fable a good reference). Because I enjoyed the first two Fables for what they were, I figured I would enjoy this game in a similar way: as a nice change of pace in between more "serious" games. As the release drew nearer, I found myself actually looking forward to playing this game.
Unfortunately, I was left with a much worse impression than I ever would have imagined before playing the demo. The first thing that stood out to me - and I mean immediately, during the game's intro - is how extremely generic the game world is. The tired cliche of an "evil villain who wants to destroy the world for no reason other than because apparently he can" is vaguely introduced, right before leading into the next cliche of your character being the "amnesiac chosen one who is the only person who can stop him." Why? Because you're the player! The Fae seem to be the typically arrogant "elder race" that wants to reclaim dominance from the younger races.
Just about everything introduced in the demo seems as if it were pulled from a checklist of fantasy stereotypes and cliches that ran their course years ago, back in the late 90's when developers were finally breaking away from those tired elements in favor of unique settings seen in the likes of Fallout, Planescape: Torment, and Arcanum. Not a good first impression…Fable certainly doesn't have the deepest game world, but at least the world of Albion has plenty of unique aspects that set it apart from other fantasy settings. If KoA's fantasy elements are this generic and bland, why should I care about the game's history and lore?
As far as gameplay goes, once again I went in with modest expectations, sensing that the combat would be a decently fun Fable-ish system. I enjoy action-based systems that require player-skill and timing, so that was never an issue for me personally. Considering the boisterous statements the developers have made in claiming that KoA's gameplay was going to "change the way the world views action-RPGs forever!", I was shocked at how clumsy the combat felt - even while playing with a gamepad. The camera is wonky, melee attacks lack weight and satisfying impact, targeting is imprecise, and there is no lock-on. Switching from attacking one enemy to the next is also clumsy and imprecise instead of having the fluid rhythm of similar systems. For ranged combat, there is only a frustrating auto-target system with no manual aiming, making combat with a bow completely unsatisfying and pointless. I feel that Fable's combat is much better and, perhaps surprisingly, has more depth than KoA.
Another element that stands out from the demo is just how childish the game feels. The fact that the game takes itself so seriously at times makes this stand out even more, and the attempt to make certain parts "epic" within this type of atmosphere is cringe-worthy. The writing isn't terrible, but it's far from anything praise-worthy. In short, the combination of the generic setting and the bland tone does nothing to pull me in.
The brief exploration highlighted in the demo makes the game world feel somewhat empty, similar to Two Worlds 2. The world seems static, with a lack of "life" populating the map. This is especially jarring considering that KoA is not a "true" open-world; one would think that the limited world map and closed-off design would have allowed the developers to fill the world with more life than this, but next to something like Skyrim or Risen, the "living" feel of the world is lacking. NPC's mostly just stand in the same area, quest-givers wait around like dispensers, and enemies seem to just statically spawn in the same place waiting for the player to show up in pre-determined areas. In short, KoA's game world does nothing to give the illusion of being "alive" in the way that Skyrim or Gothic/Risen accomplishes; it just feels too obvious that I"m in a "game" instead of being immersed in a "world."
I'm aware that my impressions seem quite negative, but I don't feel that KoA is going to be a bad game. It was unlikely that this game was ever going to be a day-one purchase, but it was high on my "anticipated games" list. After playing the demo, however, KoA has been moved firmly into the "bargain bin/wait for a big sale" category. There are some good elements to the game, such as the reasonably deep and flexible character development, but the positives don't seem to be enough to make up for what is lacking. I can be forgiving of the technical issues presented in the demo and I believe the developers when they say that it is based off of an out-dated build, but the other issues of the game - poor world design, clumsy gameplay mechanics, and generic setting - are far more alarming than the bugs for me.
but I agree with your opinion. I would add WoW like graphics and arcadey combat to my personal "dislike" list. 
