To get things out of the way first, you can't move and shoot at the same time. The controls are exactly as in RE4 (supposedly, never played it), only there are additional controls to allow the L analog to move/strafe, and the R analog to aim. The controls are what they are, and if you hated them in the demo and don't think you could adapt or get used to them, they haven't changed in the full game, so make of that what you will.
I find the controls to be fine myself. It took a little getting used to, but that quickly got out of the way. While it's true that there are other ways they could have make the game more tense/difficult, this is how they chose to do it with this game, and I think they pulled it off. It's a design choice, and you may agree with it or not, but it's pretty much fundamental to the whole experience of this specific game.
With that aside, the game has been pretty awesome. Nick and me had a 12-hr marathon yesterday, up to chapter 6. Good action, good adventure, good tension, good variety in scenarios, and hasn't felt repetitive in the least. Item management has been pretty nice; ammo has run pretty scarce quite often, with us having to make do with what we had. I'm not sure if it's necessarily 'survival horror', but it's certainly 'survival'. Presentation is quite nice, graphics on a HDTV are very cool (nice art direction, and cool-looking and varied locales), music is nice (though not THAT memorable). Gameplay itself has been excellent. Having to decide between shooting and running away has been pretty important during the game, actually. Level design has been excellent as well, lots of objects that can be exploited against the enemy.
Co-op has been very well done. Game design has taken it into account, and the scenarios are pretty neatly executed. I can see how someone playing singleplayer with an AI partner could find it annoying to babysit, but it's an absolute blast in co-op (splitscreen or online).
The major downside (or upside) to the game is that we found out the cattle prod could shock the other player. Well, the rest is history.