In that case Epic lied in the interview with Geoff Keighley where they stated that the capture was taken directly from the output of the PS5 devkit and they could control the character with the PS controller
"Press X to gameplay"
Demo looked really, really nice for the most part, but I know it's a linear, limited interactivity, single character demo.
When we do start seeing games they're going to have to have things like traversable environments (for AIs as well as human players), cover areas, spawn points positioned for gameplay purposes, far, far less predictable stress points (many enemies + AI + multiple players + grenades and special weapons), plus ... just, like, etc etc.
I'm sure the engine will still be leading edge and produce amazing visuals, but when actual games land the gameplay bits will often have to look rather more .... game like.