Yeah, that really threw me when I first started it up since I had no idea about it going in. Changed one of the options before launching and got a dire warning that it could cause horrendous performance issues so use with caution. Figured okay, fine, got a nice big rig so lets go for it - watch the low-rez intro for the demo and then I'm greeted with what looked like a stuck / frozen game to me. Waited a bit and... nothing. Thought about quitting and dialing down that option but finally touched a movement key and I get a couple of frames. Move, stop, move, stop. Oh, okay, gotcha. That's... different.
Gonna stick with Engine's "interesting but I don't know that I want to play it for real" at the moment.