YouTube user otomokanemitsu has posted a series of videos from the demo to showcase the latest build in action (I've embedded them below). I can already feel my DS Lite screaming at me for abusing its d-pad as much as I'm going to abuse it with this game. Though it isn't necessarily a "horrible" d-pad in the grand scheme of things, games that need exact diagonals and feathery light movements tend to be a case in fighting off frustration more than anything.
Overall though, the game does look like its coming along nicely... I'm hoping that we see some more information in regards to a retail release sometime soon. We've been taunted with it by suggestive posts from Mihara for a while now, so it seems like it should be time that some more set details are revealed.
There were also a few other neat things showcased at the Cave Festival. Since I didn't have anyone there to really provide any first hand impressions, I would definitely suggest heading over to Gamengai to read up on their thoughts of the event.