The demo will be as you've described*** in (1) above. That's what they've been targeting this whole time, if it's anything short of that then they simply won't demo.
***the following part isn't accurate "...and the audio is high quality in comparison to the same sized traditional speaker", as quality hasn't got anything to do with the size of a speaker. There's plenty of large speakers that sound rubbish. It would be more accurate to say that, due to the way in which the audio is reproduced, "...the audio is higher quality than almost all (if not all) speakers currently in existence".
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