As far as I know, this is the first publicly released Freedom Planet demo. It was released in August 6th 2012, just when SAGE 2012 event took place And yeah, there are lots of obvious and not-so obvious differences compared to final release. Here's some differences.

General:
-Physics feel way more floaty, especially when trying to move in mid-air.
-Special meter works differently: it regens way, way slower but you can increase regen by moving fast, or collection crystals (which, of course, works same on final game too)

Lilac:
-Aside from looking different (Lilac got her finalized appearance in the next demo, 1.2) , she doesn't have divekick and Cyclone. Also Dragon Boost's (which was Comet Boost in Readme) rev animation makes Lilac float a bit, making the door skip impossible. Lilac's voice lines are also different, and only her death scream made it to final release. Also both Lilac and Carol could spin like Sonic but that move was removed later on.


Carol:
-Oh boy, she's still very WIP skill set-wise: no bike, no Wild Claw and
no Wild Kick. The only real moves she have are Wall Jump and Pounce, which you can't do in mid-air. Carol's special ability is carrying two shields at the same time, which she hotswap them via pressing Special button. Oh, and I might as well point out that unlike Lilac, Carol's voice lines are exactly same as in the final release.

P.S. Although while there is Demo 1.0, I couldn't find it, but it doesn't differ much, as 1.1 is basically the bug-fixed version of 1.0. Also I didn't show this in video, but Carol and Lilac have their idle lines too.

Download link: https://www.dropbox.com/sh/67v8rm3tvd...