Jesus man, it has a few issues, mainly the blood echoes problem and windowed mode problem, other than that, everything else works just fine, and the square button does have a use, it's for walking slowly, since the analog stick doesn't exist in a ps1, you need to hold square to walk slowly. Your complaints about the menus, they're not horrible at all, I've no clue what you mean by the menus being bad.
Having to select keys to use them, it's just a game mechanic, put up with it, and it's not nearly as bad as you make it out to be.
You ran around for almost an hour only to die before going to the hunter's dream, you mean you ran around for an hour with only your fists? That's your own fault.
PLus, I only leveled up once, went from level10 to 20, then never leveled up again and managed to beat every enemy just fine, the gameplay, atmosphere and exploration is very fun. Not to mention it's not too hard and not too easy, it's a perfect little balance of fun.
Trick weapon transformation in menus, it seems that's there for a lack of buttons to actually transform a weapon in the flow of combat, and in this demake it seems transformation is not to be done in the middle of combat, but it's for having a second move set that you switch to before engaging an enemy. Although the Tonitrus does flow very well, by simply holding R1 for a while, but not long enough for you to trigger a charge attack.
This game isn't incompetent at all, it does what it sets out to do and more, and it's not as "Frustrating" as you make it out to be, it has little gameplay quirks to slow things down a bit and bring you more into the atmosphere, not to mention it was made by like 4 people, a lot of heart and love was put into this, very clearly, and it even has a completely new and original bossfight at the end.
You seem like you were expecting to play Bloodborne on pc, which is stupid, what would be the point of recreating the game 1 for 1 exactly? BloodbornePSX is its own new thing, of course it's different and slower, calm down, and I recommend that from now on, you don't expect the whole entire world to meet all your expectations, and try to have fun, instead of focusing on all the little things that aren't the way your entitled self imagined them to be.