Swordplay
Link's sword is controlled by the Wii MotionPlus. His sword will follow the motions you make in the air, which you can see represented 1:1 as you move the Wii Remote around in the air in front of you. Slashing is done just as you would expect it to, by doing a broad (and we mean broad—limp-wristed wagglers need not apply) stroke across the space in front of you, in any direction. Much like Red Steel 2, the slashes seem to "snap" to one of a predefined set of angles, to increase accuracy even if the player is not perfectly horizontal, vertical, or whatever he needs to be. You can also stab forward, which Link will do; this proved useful against a few enemies as well as for spearing fruits, which would then get stuck on your sword, requiring you to shake them off.
Before you complain about a lack of precision here, note that this is actually a very good thing; let's face it, you, the gamer, are no professional swordsman, and the enemies you're facing—who will try to block you at various angles, requiring you to use perpendicular strikes to take them down—demand professional swordsmanship to defeat. Link translating your intent into just the angle you need to strike helps you out, and you'll realize just how much-needed that help is when you see how quickly you need to get those strikes in. Nearly every enemy in the game played off this perpendicular strike idea from the lowliest Deku Baba to the Stalfos and scorpion bosses.
There's also a charging move, which is done by holding your sword at least slightly upward. You can, of course, hold the sword skyward, as it were, but you don't really need to; an angle somewhere above holding your sword perfectly level will start the charge, which is represented by a beam of light making its way along the length of the blade. Once the sword is charged, the next strike will fire a sword beam a la the Fierce Deity's power in Majora's Mask, except these will fly off horizontally, vertically, or diagonally depending on the direction of your strike.
Finally, there are two spin-slash moves available. The standard horizontal is executed by swiping not just your Wii Remote horizontally, but moving the Nunchuk as well; there's also a brand-new vertical move done by doing the same thing with both controllers, only vertically.
Menu systems
Holding the B button will bring out the circular menu system, which was only partially populated in the demo, though it had a good selection of items to choose from; point to the item you want and release B and you'll have it equipped. Depending on the way the item works, a swing of the Remote can return you to sword-use; if this isn't an option, you can also tap A to switch back. It takes a little getting used to, but it's got potential to be a lot smoother than the old "pause game" menu systems.
There's also a separate menu for consumables; in the demo, there were four potions there ready to drink. One of the neatest things about the potions is that you don't pause the action any longer to drink them; you can chug them on the run.
Bombs and other throwables
Link's quintessential bombs are right there on the item menu, ready to be used, but they're a little more flexible this time. Once selected, you can of course drop them straightaway if you like the idea of having explosives ticking away at your feet. You can also point the Wii Remote upward and make a tossing motion to throw them forward (a guide line appears for this purpose) or point the Remote downward and make an underhanded motion to bowl them along the ground to their destination. We thought that maybe the strength of your throw affected the distance, but we're not sure.
Far from just being useful for blowing things up, Deku Babas will also eat bombs if they land nearby. You can also throw and bowl things like rocks—something we thought would be a good way to take out a Baba perched on a slope that might have been difficult to fight on. We were right.
The whip
There's also a whip in Link's inventory. You could crack it in the same fashion as swinging your sword, throwing out its length in the direction you swing. Very useful for taking out hordes of smaller enemies such as groups of Keese.
On larger enemies, the whip wasn't quite so useful. You could whip a Bokoblin, but he'd barely flinch, and you wouldn't steal items from him by doing so. We also didn't see any points where you could wrap the whip around to swing; though given the knowledge we obtained at the developer roundtable that the same developer was responsible for the whip in Spirit Tracks as well as Skyward Sword, we suspect there might be some travel opportunities as well.
The beetle
Fans of the seagulls summoned by a Hyoi Pear in Wind Waker will love Link's new flying beetle. Controlled similarly to the airplanes in Wii Sports Resort, this item launches from Link's hand, turning, climbing, and diving as you tilt the Remote in all directions. You can also make it go faster by holding A.
The beetle is a rather versatile contraption, too. It can pick up hearts and Rupees in its pincers as well as defeat smaller enemies such as Keese. It has an almost stupidly long range, though its trip can and will often be cut short by a crash into the scenery. No matter how its trip ends, all the things you've grabbed along the way will end up given to Link when control returns.