Hi Wendy lovely song lovely voice. I think this is delicate and thought provoking. It can work as a childs lullaby or as a thought provoking moving song aimed at adults. It works with just the guitar alone but I think it could also be enhanced with a full production as well. The simple lines speak whole volumes. I hear what you say about the guitar playing but this is ok for a demo.
Being hypercritical the guitar is a bit jerky stop/start and it would really pay to have a pro lay down a good track for you.