The action mode looks and feels just like Psychonauts, with the exception of touch-screen integration, of course, and your character's use of a projectile weapon rather than melee. It's pretty much a standard 3D platformer. The graphics have taken a significant hit compared to the concept art, obviously, but the style of the game (like its neighbor at the Gamecock booth, Dementium) helps cover. The touch-screen control scheme was a little hard to manage, seeming to involve more limbs than a non-arthropod like myself had available. However, I quickly found that I could lock-on to targets with a button, and could therefore avoid the stylus altogether. I fell through platforms a couple of times, but that was actually a pretty common problem for some of the really early versions of games I played at PAX.
I could tell from my brief time that the aesthetic and humor that characterize classic adventure games is present in Insecticide, meaning that as long as the platforming gets a little refinement, we have every reason to start freaking out.