Absolutely right, Cygnus...but you gotta understand human nature here. The guys at the dev studio are probably kinda psyched about what they made, so they wanna show it to the world...even though it's an unpolished beta demo. Bad judgement, good idea, I'd say.
I've done the same thing with a model for JK2:JO...was so happy I actually made something, I wanted the world to see it...even though it was'nt properly tested. Took a revision or so to get it working properly.
Still, this shows real bad judgement on the publishers part...they shoulda demanded a more polished demo.