I do find myself wondering about audience, here. The product was given pretty good exposure to a "market" of non-paying users. If it were pushed it to markets which give you similar exposure in front of paying users, perhaps you would have a different result? Not to say getting that exposure is easy, but is this also a case of remembering who your customers are?
I'm a paying gamer - I don't think I've seen this game for sale until now. I'll check out the demo over lunch :)