nordlead on 24 July 2009
Nintendo has a download limit that is ~40MB. The reason for the limit is they believe that anything bigger will take too long to download. To make a decent demo you probably need at least 100-200MB, and the internal flash memory is only 512MB. Even if you were to download directly to a SD card, you still need free space on the internal flash to actually play the demo.
So while they could technically offer demos, I don't think they could make demos unless they were incredibly simple like Punch-Out!! (1 static environment, with 2 characters and a couple screenshots and some music)
