That was actually my first reaction when I saw this video. The graphics are incredible, sure. The people don't entirely escape uncanny valley, but they partially do, and everything else looks awesome. No question.
Then we get to the game portion of the demo, and... it's a half-step above a quicktime event. Now, look, yes, I get it, this isn't actually a game, and the game is an afterthought and not the main point. (By that, I mean the game itself, not the cars, not the agents jumping around, but just the underlying mechanics.) Still, consider where we've come from. Think Atari 2600 graphics and the sheer staggering number of orders of magnitude improvement in the graphics since then. Even if they did have tons of people working on this, all those people were working at levels of efficiency undreamed of in the 2600 era, by almost any objective measure you can imagine. (Even though we'd never be able to agree on one.)
Yet the game itself used in this demo is basically something you could fit on the 2600. I mean, the game itself, the mechanics. Obviously not the graphics, or even a facsimile thereof, but just the game's mechanics. It's still "point at the thing you want to blow up". No generalized conversation engine. No generalized music engine. If you'd like to be generous, call it an order of magnitude better than the 2600 could handle.
The gulf between the graphics and the games we have with them keep getting larger and larger, and it doesn't help that in a lot of ways the AAA games have been boxed into what the engines do. It's not just that "open world sandboxy combat" is the only game they want to make... it's that these huge amazing engines almost require that sort of game, because that's what the engines do. The sameyness of AAA games is forced by this graphics focus because trying to do provide anything but the simplest game mechanics with this level of graphics is impossible.
Which is why I've basically abandoned AAA and go indie now. The lower graphics capability turns out to be a positive advantage, because it means they can make games that aren't The AAA Engine Game.