That was just... a terrible demo. I was watching the conference from home, which was overall pretty well paced, and while I'm not into most of their games, MS did a solid job. But this demo was just, so bad. I actually started laughing.
My roommate, who was pretty excited about the game, cancelled his preorder, even knowing he could switch to a digital copy and get it on W10. He likes his Monster Hunter style games too, and his Bayonettas, and so on. Seeing the combat system so completely underwhelming on what was supposed to be such a big scale thing was really deflating for him.
Now I'm looking at answering questions about this game in store (not that it comes up almost at all, maybe more once advertising really starts closer to release), and I guess I'll use the Dragons Dogma comparison, even though that game seems to do everything related to combat so much better (at least for now... They haven't shown anything combat related that would in any way challenge that though. )