Finally tried it; the graphics and just the textures and looks are IMO identical to Silent Hill 3. I remember when the screen-shots for SH3 first came out, and everyone was saying it was going to be one of the best PS2 games graphically.
Anyways, that's aside the point. The whole game seemed choppy, and the in-game graphics, especially when firing were not smooth. Somewhat bad hit detection; the target never turned red, even when you have it right at the enemy, and sometimes turned red when you were way off (I also couldn't get more than 16% accuracy; could be because I suck, could be because of bad hit detection, could be both
). However, I enjoyed myself. And I realize the reload animations were annoying and long, but they were there to simulate an even more realistic feel. And besides, that's why they allow you to duck.
Overall, judging from the demo, I'd give this game a 6.5/10, but yes, it is still a demo, and final products usually drastically change from their BETAs/demos.