I don't know if it was in the demo, but here is a nice example of the Arcania's master writers' prowess:
Are you pregnant?!
Who told you?
Halwen!
The idiot!
So you really are?!
I have always wanted a baby... haven't you?
Yes, but that... it's all so sudden...
Fair enough... was there anything else you wanted from me?
Thing I don't understand, what's the point of having a dialogue window where you have to confirm your choice even though there is only one (1) "choice" (I don't count "END" as a choice..."). Even ME just selected the line for you if there was no other to choose from (IIRC). Problem is: if Arcania did that you would just watch NPCs yapping all by themselves because there are no fuckin choices 90% of the time (the rest 10% is when there are 2 choices).
The combat was already mentioned. If you selected higher difficulty than Normal (which was the highest possible in demo) the enemies are faster in a way that they attack without (longer) pauses. In reality they just use their charged attack all the time one after another which is annoying as fuck and doesn't present any challenge whatsoever (maybe if you consider game testing your speed and reflexes in such a shitty way). Also, they hit hard as hell, so if you somehow get between four bloodflies you either run or roll around like there was no tomorrow and hope that their stop spitting for a second so you won't actually die when you get too close to avoid their spit attack.
There is no sense of gettin new/better items whatsoever. It reminds me of Fallout 3 when you had inventory full of fuckin useless crap (TM) within first hour. Also, you can steal anything and everything, which makes it even worse.
Crafting is done without any tools. That means even making grilled meat requires no fire... maybe our hero can fry the meat with magic? I didn't get to make any sword or armor but I'm pretty sure you can make that out of thin air as well.
Apart from the WoW-esque "bring me 60 dirty socks" quests there's not much else and if there is it's dumb as fuck.
Last thing... there are like 5 faces for NPCs in total. When you see your GF's father you're gonna see his face for the rest of the game (even though he's dead) because like every other male NPC has it. It's pretty much the same for women (not to mention they're fuckin ugly).
P.S.: Voice acting also sucks, if you perhaps though otherwise.
P.S.2: Teleports suck as well. AFAIK they're linked in some mysterious way so you never know where you'll end up (you definitely don't get to choose... that would be outright crazy to even think of!).
P.S.3: You can't train lockipicking, you get it as a part of the main "story"line and you get it in two parts if I'm not mistaken (didn't get the second yet). That means you can only open chests first but doord sometime later. Stealth is a complete joke and I can't see why anyone in their right mind would want to level it up.