There's going to be massive damage.
But for the Grace of God go I.
My first thought was of the extremely rapid construction cities like Chengdu have seen in the last decade, and how they may not be up to “code”. Let us hope that doesn’t play out that way...
http://edition.cnn.com/2008/WORLD/asiapcf/05/12/china.quake/
This link tells of the damage near the epicenter due to the shallowness and also the population. Ditto what you said.