Well I was able to finally test it on a proper phone (not mine of course, mine sucks lol) due to gettin' my bluetooth dongle working. It seemed to run alright, no major lagging issues. Was a little small though, so I may release a blown up version. As for the controls, I wouldn't say they are *that* bad, I used two hands, one for moving vertically, and the other for horizontally.
I think I'm very close to having a demo finished. The first demo will consist of the first level (minus a few things). This will mainly be a test demo that I'll release to beta testers so I can get proper feedback on how it runs (or doesn't run ;p). Then I'll go ahead and release a proper formal demo.