"This is especially bad if you are in the midst of fighting a boss with a bunch of little monsters there to help him out."
This is the entire game.
"Second. the controls are a little clunky. The demo has poor hit detection and it is very easy to miss your target and leave your self open for attack. Also, the character moves very slow, making it easy for enemies to chase you down."
This is the point of the game and exactly how they wanted it to be (not very good). Playing well means striking only at the right opportunities with the right timing, not whenever you want. Hurting monsters requires big swings. Monsters also follow the same, slow, limited hit detection rules. Humans are slow cuz humans aren't fast like animals, especially wearing heavy armor. To increase efficiency, hunt with friends.
"CONTROLS HAVE PROBLEMS"
They sure do. There's no IR Pointer support, for example.
Additionally, so far, the USA demo and the full Japanese game only run at 360p during widescreen mode. Capcom, how lazy can you be?