The demo is not THAT bad if you ask me.

I pretty much like the look of it, although some shadows are pixelated.
- and never underestimate the power of fakes

There still needs some work to be done like the jerky camera rotation when using the mouse, and the bugs when resolution switching.
Maybe some more lighting stuff can be added. I'm thinking of dynamic lights which could be used when firing weapons or maybe some dark passage where one of the soldiers controls a flashlight?

However, I don't think it really is that bad as people here pretend it to be.