The answer is simple, at the time of E3 Video being captured Nintendo (probably) didn't have an adequate supply of hardware that could play the more advanced version in real-time ...
Suppose for a moment that the Wii U is using a heavily customized version of the Radeon HD 4850 chipset that performs at somewhere around 150% to 200% the level of the stock processor. The actual chip isn't completed and Nintendo won't have any until they're much closer to release so they can't use that processor so they settle on using the stock chip. Unfortunately, the only chips they can get their hands on are manufactured using a 55nm process and run far too hot to put into the Wii U case so they're under-clocked and run at 50% to 66% of what their standard clock-speed is. Since you want the demo to run at 720p above 30fps you start pulling out effects until you get your desired performance.
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