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I think not being able to download demos on the wii hurts some of the more unknown projects, ones that people are interested in but unsure of but I don't think it's prohibitive.

Not a detrimental downside but certainly has some impact. Most of the games I personally download demos for I was going to buy anyway and a demo has either resulted in no effect or me not buying the game as the demo was enough to satiate my hunger for the game..(I'm looking at you Ninja Gaiden II)