Demo 2 still isn't done yet but I figured I'd reveal the full list of changes coming with Demo 2 since it's pretty big, and it'll maybe explain why the gap between Demo 1 and Demo 2 has been so long:

• Fixed an exploit where spirits wouldn't use possession.
• Following a ridiculous speedrun of Demo 1 in just 15 minutes, the Deus Coin has been reworked:
  Damage of Deus Coin can be 1, 125, 250, 375, or 500 with a 50% chance of dealing 1.
  Deus Coin is now a guaranteed hit.
  Deus Coin uses its own damage type so bosses can be resistant to it specifically.
• Slightly decreased difficulty of Hardened cheat.
• Updated descriptions for ALL equippable items.
• Viewing equippable items in the inventory shows even more info.
• Battle Staff now only hits 3 unique enemies.
• Fixed the Pickaxe having 5% more crit chance than intended.
• Slightly nerfed Siege Pendant for casters. 
• Slightly buffed Channeler/Strength ring defence.
• Key items have been renamed to Quest.
• Enemy idle animations have been updated.
• Fixed alignment issues with various battle animations.
• Swapped Suppressing Fire and Sleeper Agent in Sophia's skill list.
• Status inflicting skills are now a base 100% chance.
• Altered enemy physical skill targeting.
• Iron Shield is now available from the beginning.
• Steel Shield is unlocked after collecting an armour piece.
• Iron Shield in the bazaar is now a Steel Shield.
• Power/Charged rings are no longer available from the Port Magnus shop.
• Shops now stop selling the previous tier of items when they update.
• Breastplate icon updated to match other heavy armour.
• All rings have been buffed.
• Robes have had their defence increased.
• Chain Mail has been renamed to Scale Mail.
• Speed/Spontaneity stats of all armours reworked.
• Bandana has been buffed with new effects.
• The Construct now drops a Battle Staff instead of the War Axe.
• Poppy and Sophia have had their base defence and HP from levelling up increased.
• Lazarus has had his base defence from levelling up decreased.
• Lazarus' base HP has been decreased by 10.
• You now start with two empty bottles instead of needing to buy them in Inkagafar.
• Bottle crafting recipes now only require 1 non-jelly ingredient.
• Extra readable books in the library.
• Extra books added to the Doone house bookshelf.
• Encounter music only plays on the world map (with some exceptions).
• Enemy skills that drain EP now drain less than they used to.
• Debuffs from skills have had durations altered.
• Channelling Staff now deals half damage without a stone equipped.
• Elemental stone descriptions modified to be more clear about how they work.
• Heavy armour defence decreased.
• Sophia's damage scaling has been reduced from 75% EPW + STR to 66% EPW + STR.
• Crossbow becomes available for purchase after obtaining one armour piece.
• Secrets of Energy is only 10% EDF instead of 20%.
• New technique book (200 Insults) is available.
• 5% base EP regen has been removed from Poppy.
• Lazarus now starts fights with 1 SP upon reaching level 9.
• Dusty Book is now Worn Book.
• Worn Book increases healing output by 10% without any increase to healing cost.
• Protection has been replaced with Treatment and has a new effect:
  Treatment heals a single living party member for 25% EPW. Doesn't cost EP.
• Assault has been buffed from 90% damage to 100% damage.
• Unconscious state has been renamed Dying.
• Sleep is now 2 turns instead of 3-5 turns.
• Alarm has been renamed Stabilisation.
• Purification is now Cleanse and removes all negative statuses.
• Renamed Vital Spot to Critical Strike.
• Jelly is now worth 5 silver.
• Sand is now worth 15 silver.
• Tutorial fight has been completely redone.
• Item tutorial updated to explain how elemental damage applies.
• Most enemies have been modified in some way.
• Flame damage is now Heat damage.

Obviously this list can still change, but this is looking to be the final list of changes from Demo 1 to Demo 2. Full update to come soon.