I should have video posted early next week. The fact that I don't have an option for inverted Y-axis controls (aka airplane controls) made things uncomfortable in the beginning, so it took a while re-learn how to aim. I'm also having trouble getting the 30000 ptas.
Nonetheless, I can still achieve a grand symphony of exploding heads and burning bodies and super head-smashing kung fu. My kung fu is good.
With regards to respawning, I don't know. While I run around the village, actively trying to kill people, more time passes by than simply going around collecting items. If I didn't trigger Chainsaw Pedro yet, eventually I see 2 different brief cutscenes at 2 separate intervals (the demo is under time limit, recall) where a group of 4-6 villagers rush to the scene. If i'm not wasting people too quickly, like with shotguns or grenades, then the number of freaks chasing/surrounding me seems fairly constant, but that doesn't include the handful of people I see waiting on rooftops or standing unarmed and pointing at me. Is that respawning? Maybe. Seems like there's enough reinforcements to last the time limit.