Firstly, the Demo lasts for like 10-15 minutes at most. Sure, they could've made it more spooky and such, but the truth is that the Demo offered a lot of tention, feeling, creepyness.

I would suggest to highen the headset or such, pay attention to the small details that actually makes it creepy as fuck, such us when Lynn all of a sudden starts screaming.. That fucking moment just freaked me out!

I believe Red Barrels are going for A LOT more than just jumpscares in Outlast 2, other than Outlast 1, which was pretty much only jumpscares you where truley afraid of.

The Demo is also the start of the game, even if we don't know if there are parts cut out to keep it interesting (highly unlikely). When I was finished with the intro I was thinking "Wow, this will be truley fucked up", and I believe that it was just this Red Barrels where going for, to build up motion, make you eager to play the rest of the game, makes you wonder what the fuck is going on when a witch with an axe brutally cuts your crutch off.

But hey, these are just my speculations.