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Yes it was a good decision. It's always better to sell to a larger pool of potential buyers.

On PS3 Demon Souls sold 1.64m while Dark Souls sold 1.16m. It would NOT have sold more PS3 copies if it was exclusive.

If I had to guess I'd say that people who played Demon Souls probably got enough of it and didn't feel the need for more. If Dark Souls had been a PS3 exclusive it would have sold even less.

If there is a substantial number of Demon Souls fans who refused to buy Dark Souls because it wasn't a PS3 exclusive then I weep for the gaming community.