gooberking: Did you not get the memo?[...]
I agree on everything you wrote. Since there's not much left to add to your well-formulated contribution, I will just state that I probably would not have started to play games on PC, if the circumstances back then were the same as they are now. Trying demos out for free was a necessary means to experiment and learn about my personal gaming preferences, what different genres were about or what control schemes are suitable to use for keyboard and mouse, for me, who started playing on the original Playstation. Now that I developed a certain taste and have set priorities of what I expect from a game, this isn't that much of an issue anymore, but an issue, still.
I would also like to point out that, if you only had one level to try out in a demo, you were much more encouraged to look for small details, do every sidemission and speak with every NPC as opposed to getting dragged through a game by script designers(that many games thrive for today).
Maybe my playing behaviour changed over time, but I felt demos back then were more fleshed out than the typical 10-minute-gameplay-video on YouTube.
Demos allowed for choosing your own pace, seeing many little ideas despite or even because of smaller "games" and environments(=less playtime). They allowed to participate, not passively watching, but actively exploring the gaming universe and the unlimited opportunities it provides, making the evolving of your favourite game genre endlessly more exciting, while at the same time ecouraged you to take a step into other, unknown or disliked genres, without taking too much risks.
And money and availability are of course of importance. Demos were more and earlier available than their complete counterparts. Making you pay for trying something out makes the whole trying part useless, because originally you tested something to learn if it's good enough to put money down. No income provided, good luck playing games and learning about what to care and look for in 2015!
Then the disappointment effect:
If you paid 60$/€ for a game you could not try out beforehand, that you did not enjoy much, because it did not run well, looked well, played well or kept its promises, because you happen to have no friend to show or rent you the game in question:
I don't want to know how many people turned to more dubious methods of aquiring games or turned away from gaming as a whole because of this. Even if you could get your money back, that's not so easily done with time or excitement.
If even the "demo-ing" of a game you are interested in costs you money, you are more hesistant to make a buying decision, but you also have to convince yourself to overcome your doubts first. Given you even have the money to do so.
And this is where it is all wrong:
It's not your job to convince yourself, it's theirs.
You shouldn't wave away your doubts about a game wholly on your own, they should give you the means to properly deconstruct them by making a suitable/representative demo availalabe to see for yourself that you can't go wrong with this purchase of their product.
Now, that's more text than expected. Though I should have known better. Thank you for bearing with me.
Midoryu
Edit 1 - two minutes later: Fixed conjugation.