I have been peeking at this thread from time to time and since I downloaded the free SC demo I thought I'll share my opinions.
Firstly, note that I am not biased against Star Citizen. I wish Chris R. & Co. all the best and I hope when the game is finally released it will rock! From what I've read and seen here and other places on internet, I think that ED and SC are different games aimed at different public and I will not compare them, apart from maybe aesthetic aspect. Another note: I do realise this isn't even alpha stage of the game and everything will be polished and improved in due course. But I also realise that ETA on this polish is unknown (or is it?).
Now, time for my feedback, hopefully this will be helpful for someone.
A side note: with SC minimised, my system performance is quite low! I experience lag when moving Chrome window on my secondary screen. Whoa, never seen that before with ANY other game :S
Hangar Module
First thoughts, right after launching the game: FPP steering is really bad. It reminds me of some really badly executed games of early 2000s. It's clunky, it stutters and it doesn't feel very natural at all. The blur when rotating the view is nice though, but I've seen it in many games before (Witcher 2 comes to mind).
The hangar itself is... boring. I could interact with a pilot's gear locker, it showed me some clothing. I could bring one display up, it showed SHIPS, WEAPONS and AMMO sections, all empty. And that's it really.
Is this what the Hangar module is all about at the moment? I hoped for something more really... They could at least implement more interactive stuff.
Running the game on highest quality preset, my FPS was between 30 and 50. Pretty low, sadly. For reference, my system spec can be seen
here. I hope this is just lack of optimisation, as the graphics are surely nice, but nowhere near justifying such a low FPS in a closed space!
External ship design
Not a huge fan. Looks weird, not really appealing to my taste. But that's a very subjective matter, so let's leave it at that.
Interior ship design
A side note, at this point I Alt Tabbed back to SC to take another look at the ship interior and the game froze. Had to restart.
So, interior ship design: seems very steel-like, grey, cold and raw. No fireworks at all. Comparing to ED (I think it's fair to compare both games in this particular aspect) it's VERY poor. ED ships feel cosy and complete. They make sense. Star Citizen... Just meh. Like I was sitting inside a metal cage with glass walls. On both sides there are come flickering screens with reversed letters (like they should be visible from outside). There are cables running alongside the cockpit, some parts of cockpit windows are clear, some are matte. Everything is grey and dull.
Oh, I have also crawled into the rear part of the ship. My pilot lay down and just seemed to be chilling out. Not sure what that's for.
Generally Star Citizen starter ship feels like old 80's cheap car (Fiat 126p, google it!) and Elite's Sidewinder feels like a posh 2000s Mercedes in comparison
Not impressed at all must say.
Ok, so my pilot sits down and then... presses some invisible buttons. Riiiight. OK, maybe the two weird frames on both sides are placeholders for some screens that will be useful later in game. The menu appears in front of me, so let's try this:
Drone Sim - Free Flight
Note: This is going to be quite chaotic. I alt tab and type as I play and observe or when stuff comes to my mind, so apologies for that.
First thought straight away: loading screen feel very weird! I am used to Elite seamless gameplay and I was expecting the hangar door opening and me flying out! OK, it's a Drone
Sim after all
So, the flight model feel arcade-ish. Maybe I'm just used to Elite, but SC flight model doesn't really appeal to me. It feels too fast, too rapid and just weird. Huge yaw rate is quite bad, I couldn't get used to it.
Visibility is quite bad, I can't see much as there seems to be too much stuff blocking my view form the cockpit. The frame, the 2 side screens, the upper holograms... There's just too much stuff cramped in there. It all looks quite chaotic. Speaking of the holo displays, they're not intuitive at all, I didn't have a clue what I'm looking at

I realise that it's probably described somewhere on SC forums and there are some guides on internet, but I didn't have time to look for them. I do like the free look zoom and DoF though, it's very cool effect indeed! The shadows are really bad on the other hand, ouch.
External cameras: YES! Nice! Then I see my ship again and... meh. Not my style, looks like a metal box in space. Back to cockpit! Fly some more and... that's it really.
I didn't try dogfighting, as it's quite late and I've got work tomorrow.
Ah, a word on graphics. It looks very nice and detailed, but nothing outstanding I'd say - and I've read many many posts praising the graphic design of SC on internet. Really? Isn't this just "fanboyism"? Nothing really wow'd me here.
Conclusion
Overall my first impressions aren't so great, however I do realise this are bare bones of the future alpha version of the game and things will get better. At the moment the demo I played left me with "whatever man, nothing to see here, move along" feeling. Frankly, I don't really understand at all why RSI decided to let people download this demo version of pre alpha... It seems like a bad decision from promotional point of view to me. :S
It certainly doesn't leave a very good impression for someone that only followed the project very vaguely and in my particular case it just made me not want to follow Star Citizen development for the next
insert random number of months/years here, until the game is actually at more playable stage, with some universe to explore, some ships to buy (for in game money), some trading to do and maybe some simple missions... Until then - good bye SC, lets not waste my hard drive space!
Why people are praising that... concept so much? (It's hard to even call it a 'demo', let alone a 'game' IMHO). Sure, I understand that some of you are emotionally (and/or financially

) tied to SC and Chris R., just like many people that purchased ED are tied to David and Elite, but I've read so many posts just claiming this is going to be the best space sim and so on, that even now this game (what?) is awesome etc. etc. etc. Really? All I could see - and let me reiterate: I am not biased against SC, I am just trying to be objective - was just a concept of a future game and a concept that doesn't leave particularly great first impression for someone that didn't know much about the project.
As a final thought: Looking at KS, the game reached it's funding goal in the last Q of 2012. So, in nearly 2 years RSI got LOADS of extra money and all they managed to come up with is this? One word: MEH.