#96 "The reason they charge is to recoup some costs. It costs money to dupe CDs, it costs money to pay for bandwidth"
If they don't put the demo out on CD, they don't have to pay to duplicate CDs do they? The money from retail sales covers the cost of duplicating retail CDs (which is minimal anyway). They shouldn't have to recoup costs of duplicating demo CDs because they shouldn't sell the demo in the first place.
Bandwith isn't really an issue either; often games companies use 3rd party sites such as Blues, 3d Gamer etc to host demos instead of using their own bandwith. They do it for free as well. So, if EA decided to make Blues pull the demo, they'd be biting the hand that feeds them.