Looks great! But character's turning movement is huge huge distraction, it's like punch in the face. I mean straight-walking movement is smooth and then - BANG - from one frame to another, character turns. I think this could work in some hand drawn-cartoonish adventure game like Broken Sword - there you don't really need that smoothed transitions, you actually don't really need so much frames for your animations in general. But if it is 2.5D with realistic look like yours is, it just don't work...
Actually Broken Swords walk animation system was really good. It featured both rotation of the character before walking off in a new direction & it also featured a ground to contact walk cycle & also begin & end walk animation frames as well as walk prevention radius if character clicked too close to character to take a step. What I observed while playing the game. I think Broken Sword 1 is the sort of walk cycles most of us should be striving to achieve in point & click games instead of the snappy moon walk looking things most of us end up making. I believe that it is entirely possible to create workarounds for these features using a combination of action parts, loop & lua script. Although I guess it's all pretty complex, especially for anyone with little to no scripting/programming experience.
Now, about the trailer. It looks pretty disturbing & I like the fact that you are using different perspective angles for scenes & I believe you have created custom interaction animations for a lot of the interactions which is nice. I'm not a big fan of generic interaction animations that get used for just about everything in a game as they are boring & lazy - far as I'm concerned...
I do however agree that the walk animation could really do with a bit of work as it's not as smooth as it could be. You are using 3D characters so, you should be able to create non-slide walk cycles without too much trouble I think, which will make your walk cycles look more realistic to suit your graphic style. Will require a bit of work from you to get the movement offset for each frame correct though.