Neat demo! I loved the combination of real photos with simple 3D, I have a big soft spot for this kind of art style ("playing with JPGs"/drawing characters into real places). I think it just feels really nostalgic and uncanny in a good way.
I know the description said to stop after the "cute and cool" transition, but honestly I think the combat area wasn't too bad either. Pelvic thrusting around and beating up PNGs was really funny, and the... thing... you briefly see at the end looked pretty cool.
Still, I do agree that the first, "real world" section was much stronger visually, and honestly I'd love to see a whole game in that 2.5D style, combat and all. The kind of hack-and-slash combat that the second part of the demo hinted at is kinda a dime a dozen, and I'd say the first part's use of the real world felt much more unique and much more "unreal." The "unreal" segments (which I guess means the combat zones) could simply be represented by more edited/weirder photos.
That said, I do wish you could sprint in the real world, and some better indication of where the exits are would be nice (a lot of areas look like paths leading out of the photo).
Either way, good job!
