It uses alot of tricks and shortcuts to "emulate" some of the more complex ray tracing functions, so it will never be on par with DXR ray tracing.
The demo is so well crafted that nobody really saw that the "reflections of reflections" were actually faked, or rather cube mapped.
But the fact the reflections were mirror quality was a dead giveaway that's all it was pretty much good for even when the demo was first released. Whereas DXR reflections we've seen so far can be done on any surface, translucent/transparency, partial reflections and accurate reflections of reflections that we've seen in games like Control, this is more like a step up from current software reflections but not a direct replacement for hardware dedicated ray tracing that doesn't need to rely on low/approximated rays or faked tricks.
The deliberately dark and carefully placed scenes in the demo hides the limitations quite well, but DF was able to point them out.