I've tested during one hour the IL-2 demo for 360, and so far, I'm very impressed. Take into account that I write this as a long time air sim fan, and I spent thousands of hours in many flight sims in the last two decades.
In this demo, graphics are outstanding. Virtual cockpit animates fully, with most dials operative (vertical speed indicator, slip indicator, airspeed, flaps control, engine temps, etc). Cockpit frames cast shadows, cockipt gets dark depending on position of the sun, oil stains in the windshield... the lot. Combat damage is visually displayed in your model.
Flight model seems very good, in "Sim mode" I believe is using a high fidelity mode, similar if not equal to its PC counter part. The problem is that its very hard to control the plane with the controller. You get stalls, spins... and you can recover from them with a little luck and height.
Combat in Il-2 is amazing, as always. The demo allows you to test a Spitfire MK.II against a He-111H formation, escorted by Bf.104E2... I was able to fly through heavy bomber formations without a noticeable framerate drop (it drops a little, but it stays more than fluid).
AI is good. Bombers fly in defensive formations... Bf.109's are aggressive and AI believable. As an example: I was in pursuit of a yellow nose. The dogfight was at very low altitude were the Bf.109 was able to start pulling away from me. Even at WEP power, I was not able to overtake it. So I fired a short burst in from of him. The AI pilot, seeing the tracers, made a mistake , stalling his plane and crashing to the ground.
Padlock implementation is fine, though basic.
So far, very good.