Demo is great though I find it a bit too easy even on master ninja mode

(perhaps due to upgraded weapons from the start). My initial impressions and thoughts as well as comparisons to NG2 are:
1. Visuals have been improved. Nice framerate throughout but I did experience some slowdown during the fight just before the Buddha boss on mentor difficulty, but on master ninja, it was silky smooth. Overall pacing is slightly slower than NG2.
2. Less enemy count compared to NG2 on every difficulty setting but enemy health has been greatly increased. On master ninja mode UTs are not guaranteed kills and it takes forever to de-limb. This is good news for you free-formers out there.
3. Bread and butter moves like Izuna drops have been nerfed. GTs rarely de-limbs anymore. Looks like they’ve shifted emphasis from larger enemy count in NG2 to more resilient enemies in NGS2.
4. Significantly less projectiles now even on master ninja mode. A definite shift towards more melee attacks. Again good news for those of you who couldn’t tolerate the projectile spam and non-stop explosions from incendiary shurikens on master ninja.
5. On master ninja mode, you suffer one hit kills (or go from full health to nearly zero) very easily if you’re grabbed by enemies. One bad mistake and that’s it basically. I suppose this offsets the reduced projectiles. Instant IS explosion is still there when it misses Ryu and comes into contact with wall/ground but with the reduced numbers, it’s a moot point.
6. No more projectile weapon UTs from the bow. This could signify significant changes to boss battles like gigadeath and water dragon. Maybe there’s no more tapping x to run on water.
7. Initial impression of Ayane is good. Very fast and has some useful moves. Need more playtime to gauge her character. The fact that she doesn’t have the ability to windpath on enemy's head however is a bummer.
8. Co-op missions run well with no noticeable slowdowns. It’s fun though offline CPU A.I. has the nasty habit of absorbing your essence. Will definitely be more enjoyable with human co-op partners. Well, competent ones at least.
Overall, it’s a thumbs up from me and a definite buy if you're a fan of the series. The changes to gameplay and departure from NG2 is quite significant. If you’re one who enjoys hard challenges and don’t need hand holding, that is.

Then again, I suppose coming from a hardcore fan of the series, that's to be expected.