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Kowan said:

It's only logical. It's just the demo and they only needed it to be playable from start to finish. They developed the demo separately from the full game. They delayed the development of the full game itself just so they could release this demo(mentioned by Tabata on one of the Active time report videos) so they most likely had little time to perfect this as they NEEDED to go back developing the final game. From what many of those who played an hour of it, it looks like the demo while not optimized to its fullest is playable, fun and serves its purpose perfectly. Which is what a demo should only be, specially since they have the full game to finish.

100% agree

Edit: though I still think that it'd have been cool to see how magic works.

Edit2: But trying to make the demo's release coincide with Type-0's could also be a reason to rush it.