I think Nintendo's lagging behind, well, everyone else in the world on comprehending the Internet. Take the Gamecube. Sure, it had Internet... if you bought an expensive attachment. And sure, you could play games online... so long as it was Phantasy Star Online.
The Wii has greater Internet functionality, sure, but you also have to struggle with friend codes and games that don't fully support all the features you might need to communicate with others, like microphones. Oh, and if you want a wired internet connection you have to buy an adapter. WTF.
I think Nintendo has been looking at the Internet from a Japanese point-of-view--from what cursory research I've done, Japan's citizens lagged behind the rest of the world in adopting the Internet, and Nintendo itself may have been considering how widely the Internet is used in Japan when it designs its consoles and interfaces, but failing to consider its importance in other countries. This attitude may also have led them to regard the Internet as a minor feature rather than a vital one. So, I theorize this failure to understand the Internet's potential and how important it is worldwide is what is behind baffling decisions like demos being made available for only a week or so. They just don't get it. Not that that's an excuse, because Sony and Microsoft don't appear to have the same problem.