I think the demo is closer to being on-point than you realize.
The brand of horror we're given reminds me of ReMake in that it relies more on ambiance than "look, flesh eating zombies" (which aren't scary to begin; I hold that RE never had really horrific enemies - zombies and giant frogmen don't really inspire much horror or fright imo). The demo's atmosphere is more like the outside segments of ReMake specifically. The dark paths leading down to Lisa's shack where you're cramped, hear noises, and don't know what could come at you from the woods.
Given the above, you could say the news about the demo not being part of the game is mildly disappointing.