Is it so bad? oO
For me it looks great and run smooth and it's also off-screen footage so... i really can't understand all these complaints on the graphic.
It doesn't look even remotely bad, but it definitely falls behind E3 in almost all aspects (especially combat animations). Now, there might be several reasons for that IMO
1) It's pre alpha (duh!)
2) Demo takes place in a dark, rainy building (no lighting,TLOU's strongest asset)
3) Combat animations are different than when fighting humans ( I hope it is at least)
4) The dumb HUD/pick up icons pull you out of realistic world/atmosphere