The graphics are amazing. People say it's because the demo is the same level looped over and over but I don't care. It's obvious that some parts of the demo was not the same level data(the trippy bit with the eyes in the paintings was very lengthy/elaborate). Also, Silent Hill design was always pretty cramped... they could probably make an entire game that looked like that.
The demo was more of an interactive horror movie, and really funny watching others play it.
At one point the game said "You can't turn back now" and I asked my sister if she was done playing and she joked and said "it would be funny if they wouldn't let me turn it off now." That's exactly the kind of **** Hideo Kojima would do! Try to turn the console off only for the playstation interface to tell you that you can't turn back right now...