From my understanding, part of ED's charm is that it's a balancing act. Sometimes you may want to blast them a few times and kill them, sometimes you might just want to hit them once, then run. From the looks of it, 2 shotgun blasts kills them off, but i really don't know.
The 3 paths is a major part of ED. The story and stuff changes depending on what path you choose, and if you go back and do all 3, you get the Uber-ending. My guess on that was it's the end of the demo. They didn't want to show too much of the game, and didn't show any story, so I bet they just had him turn into a zombie and then ended it. But who knows, anything is possible. It could be a sanity effect.
My guess is 2. Having a room full of 20 guys, you're better off killing them one by one. I think it's just stuff that can happen if you're not careful, so you gotta think before you attack. Cause if there were 20 guys in that room, they might have died.
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