The Xillinux distribution is a software + FPGA code kit for running a full-blown graphical desktop on the Zedboard, ZyBo or SocKit board, attaching a monitor, keyboard and mouse to the board itself. Xillinux also supports MicroZed without the graphics.
This is not just a demo, but a kick-start development kit, making integration between the Linux host (PS) and the "FPGA part" (PL) simple, intuitive, and relatively effortless.