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I personally don't think Project Beast will be a sequel to Demon's Souls, because the Dark Souls series is already carrying on the spirit of the first game (e.g., challenging gameplay, messages, co-op/invasions, etc.). In my opinion, I think the project is going to be a new intellectual property that, while aimed at Souls fans, is going to attempt to do something differently (well, at least I hope, anyway).

As for pure melee in Dark Souls 2, it's definitely as manageable as magic in a new game, but in NG+ and beyond while in the Company of Champions, basic enemies hit friggin' HARD and take less damage from your swings, not to mention all of the phantoms who are deadly in melee range because of their seemingly endless supply of stamina.