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I won't respond to all of your points as some others have already addressed them but I just read an article at IGN where Miyamoto (mental blank on the directors name) explained the direction they took for the Zelda demo/display. 

Their primary and even sole focus for the show was to show people how the new controls worked.  That is they intentionally haven't shown much of the game and didn't include any dungeon or puzzle sections because they wanted people to focus on the controls in the action segments.