So I've played the demo a few more times, and have warmed up to the game overall.
The controls are still not ideal, but as long as you learn to compensate for the weird analog acceleration, it's fine (but not ideal).
I finally figured out how to get the AI (and the combat at large) to become more dynamic -- you have to be dynamic yourself. Previously, I kept going to the same cover spots to do the stop-and-pop style shooting that KZ2 encourages, and each time, AI results were mostly the same. They stayed in their same corners and popped their heads up for me to snipe. I found that if I tried different things, like throwing lots of grenades to force them to move, or jumped over my comfortable protective barrier to charge them or find new cover and generally be on the offensive, it forces them to react and become more dynamic.
While it isn't HL marines or Halo on legendary, it was way more fun when I took risks and played by the seat of my pants. I really like turning off all HUD and crosshair and firing from the hip. Really has a visceral blindfire quality to it. I guess the best part about the combat is that most of the results of the action seem very procedural, i.e., I toss a grenade and enemies' bodies go flying and landing in different places, which trigger other procedural/physics driven reactions. Reminds me of Max Payne 2 from a collateral standpoint.
So yeah, speaking of the midget protagonist/hero -- what's up with that? Why is your viewpoint about a head shorter than everyone else?