Nintendo took the opening movie from The Legend of Zelda: Ocarina of Time and applied their 3DS magic to it. The added depth from the 3D effect expands the draw distance when Link runs towards Hyrule Castle.
Since the demo was a movie I played with the depth switch again. You can slide the switch back and forth rapidly. I tried it. When I did that it seemed like the graphics expanded when in 3D and squished together to make regular graphics when the slider was all the way down.
During the developer roundtable, Eiji Aonuma explained The Legend of Zelda: Ocarina of Time 3D utilizes the touch screen for item management. Instead of wading through menus to take the iron boots on and off in the water temple, the 3DS version assigns this function to the touch screen. Changing outfits works the same way.