I played your demo. I think your mapping needs work, but others have pointed that out. I would like to say that it is good that you are thinking of your own system, but however, there needs to be some realism. A knight is someone who has trained, proven his worth, but your character is only "16". How can he have proven anything? I would suggest you come up with another title, as a middle title. You can say he's still trying to prove himself, but past training. Squire (Trainee) New title (Past training, but not yet, knight) and of course, knight (Proven)
If his father died when he was twelve, it was likely he would need more training, and it would likely be with a mentor or a guardian. I think you have some good ideas, but you need to work out the same details. *After all, this is suppose to be a 'real world', and people should have real reactions.*)
Something else, the town where the bandit leader is giving trouble... Why is it that the villagers say the exact same thing? That's not likely to happen. Try to have various things that they say, but still about the bandit.
KID: My daddy tried to fight the bandit leader, but I never saw him again.
WOMAN: I hate that bastard! He's ruining our lives.
WOMAN2: I'm so hungry that I could eat a horse, which I did, because the beast was eating us out of house and home.
MAN: We have no where else to go, because we're broke. Not even the King will listen to our pleas. Can't get past the gate of the palace.
See? These are suppose to be real people, with real feelings, and experiencing some awful event in their lives. And not everyone will exactly hate the bandit leader, either. But I think you need to work on your mapping first, and then work on events.
About the graphics. I am afraid they clash horrible. Monster don't go with the battler of the characters. It looks bad. The world map clashes with the towns and so on. Although, I have to say that you chose good music and used that very well.