Couldn't finish the demo since I got sleepy after reading so much. Later I saw the one hour video full of spoilers of the guys talking about Katawa Shoujo, good stuff.
And you know, the best part of the entire experience for me in the demo was the intro and first few minutes of the story. Is just so perfectly well done and so simple.
Also, I checked the first page of the read me file that comes with full game and I see this project started in 2000. Didn't imagine for one second that it took that long to make.