False.

That would really make this game for me, a mechanic where you can recruit allies to help you take down outposts would be great. 

Hmm, honestly that's too bad.  I dunno why developers release demo's with huge gaps in what is going to be in the final game.  I used the demo to see if I would like the final game, and it was demo'd as not having some kind of party system to I walked away from it and bought borderlands goty in preparation for the new borderlands game.

All I can say is, woops.  The devs should have modeled the demo around how the final purchase would have been playable as really. 

Did you even bother yourself to read more than the title?

increased level cap is live.

My wireless would periodically drop out on me too, it got quite annoying for a while until I started doing stuff about it.  In the end, I gave up and just wired it directly to the router (which stopped the issue entirely) by using a 16 or so foot ethernet cable I had on hand that goes out of my room, into my living room where I set up my router (as this is the place where the modem was able to connect).  It's an issue with the router most likely, I had a 40 dollar one I bought from wal mart, and the lower end ones have connection/disruption issues typically.

If wiring it directly isn't an option try:

Port forwarding

Prioritizing your console in the router menu's QoS Settings

Changing wireless router channel to minimize interference

Updating wireless router firmware

I phrased those so you can copy and paste any of those into google and the instructions of how and why to do these things should pop up right away.

As most who played the demo might know from the in game scrolling news, they are supposedly increasing the level cap on the 10th (late tonight or tomorrow) as well as giving us a new level to try out.  That means that the titan special move upgrade will be available as well as the infiltrators sniper rifle, the scientists rebounding blade weapon, among everything else that did not have the words "demo" next to the lock symbol.  You will still have to level up to get them, but it should be fun to see the dynamics in place.

The game UI worked fine for me, it is available in between games and if there was any problem joining in my buddy might have used the xbox UI to join into me but he never let on this was the case.

Oh and I forgot to mention, on one occasion, it actually pulled us into different games.  We won a game... well, my team won, his team lost *eyeroll*.... and it split the 6v6 into one game of 4v4 and one of 2v2.  It literally pulled the guy I invited into another game and he had to invite me to his.  It's a demo, atm it's demo'ing how flawed the multiplayer matchmaking is in terms of being able to play with friends.  It's not an issue of what's obviously better for the game, it's an issue of what the devs thought was obviously better for the game.  ATM, they seem to belive strict game balance is higher priority than playing with your friends.

What they need, is a more intuitive system for the MP balancing too.  Lets say in an imaginary 2v2 match there was one guy with 50 points, 2 guys with 25 points, and one guy with 1 point.  The game splits you into even and odd so the next game is the 50 point guy with one of the 25 point guys, while the other 25 pointer plays with the 1 point guy.  Honestly I think it should have an algorithm where it not only splits the teams up half and half, but tries to even out the total score better, like in the example above a more balanced team would be the 50 with the 1, and the 2 25's together.  One good player with a bad player against 2 average players.  This system would be useful because it could prioritize people that joined the game together, then use the randoms to even out the scores.  Like if 2 guys in party chat play a game and win, getting first and second place by a mile, the next game they would play together again, but the other team would have 3rd place, 4th place, 5th place and so on... giving the better players some underskilled team members to balance it out.

It's not a hard thing to do for someone who has gone to school to use and construct game coding.  They just have to think it's high enough priority.

The game seems pretty good but when I invited a buddy to join into my game (I wanted him to know about the game as a possible buy because it was so much fun) we ended up on opposing teams in all but 2 of our matches.  I don't know who assumed people don't like to play online with their friends in multiplayer games, but it just cost them at least 2 sales.  I think we played for about 3 hours, in around 12 matches which we were almost always pitted against each other.

Great tactic for balancing a game, terrible tactic for making people want to buy a game. 

I'm 97% sure there is online split screen, I remember a part where the dev was saying what you could and couldn't do online with splitscreen (which is that you can't play online splitscreen against 2 guys that are playing splitscreen, but everything else is ok)