Correct! Also, the game will be free on itch.io until pre-alpha and the demo version will always be available here to play!
There will be at least 2 more updates on itch.io (the final one will be 0.3 I think)
The free version should have already the polish and most game elements you will find in the final version, however, the final version has an actual full story/lots of characters and just more content that you would not find in the demo version.