I like the concept. The basic gameplay feels very solid, and I really like that the dialogue is short and to the point. This is one of the most mechanically sound early demos I've played in recent history. I have a couple of suggestions, but they're more of big picture concepts rather than specific criticisms of anything presented.
I think that the ability cooldowns could be displayed a little more subtly or out of the way, perhaps as a slight aura around the character or in a sidebar? I also suggest rethinking the leveling system into something more along the lines of a Zelda or metroidvania game. Rather than allowing the players to gain infinite levels based on how long they spends in an area, I recommend scaling their strength based on found items and powerups. This will encourage exploration, as well as make your job of game balance a lot easier since you'll roughly know what to expect in terms of player power for each area. Different unlock conditions for the erotic scenes could be another way to increase player involvement. Some enemies may need to be defeated with a certain ability or with a specific companion in the party. This will give more reason for players to revisit old foes and puzzles when they have new powers available to them.
I think that the idea is very promising and I'll be sure to keep an eye as to how it develops. Good luck!