If you want to keep it short, just having the area around Tenriyo (or even more, just having the tutorial cave) could work?
Edit: to clarify, I would suggest you include tutorial cave, Tenriyo, Hole-in-the-Wall, and their quest areas (VD, DD, PC) only. This provides the tutorial, shops, wilderness action, a choice of quests, and a challenge (puppy saving). Since the classic storyline has you finish the odd jobs around Tenriyo before being pointed towards CoC, this is a natural point for a demo to end.