http://www.gamasutra.com/view/news/213775/Ouya_ditching_prob...
Just another ill-fated and ill-considered promise from the Ouya staffers. Unfortunate; I liked it on principle.
Developers kept telling us that requiring a free component was discouraging them from publishing.
Since we changed our stance on that issue we've received a large influx of new and awesome games. So while it might not seem ideal from a gamer's perspective at first, the availability of a lot more games is pretty nice.
As has been pointed out elsewhere in this thread, the technical and design challenges of offering a working subset of a game as a demo can be quite high for a small developer. Even AAA studios can't always justify the cost.
In an ideal world, 'all games have free trials' is good. The realities of game development mean that even for games where it's possible to build an excellent trial, it may not happen. Budget cuts happen, resources you thought you had go away, your schedule slips or deadlines draw closer - in those scenarios, it would be unreasonable to make the core game suffer in order to have a demo ready by the deadline. Most developers would instead focus on the most important part - the core game, the thing people are paying for.
There are also games for which it is near-impossible to build a free trial. A recent example is The Stanley Parable; the nature of the experience made it impossible to have a 'free trial' version of the game, so they had to instead build an entirely separate game that they then gave away for free, and tried to use to convince people to buy the actual game.
That solution worked great for them, but it took time and resources. I wouldn't be able to bring myself to tell every developer they had to do that just to be on my store.
Note that demos and trials are great when they work: They help convert slight interest into sales. However, many successful games sell entirely on the strength of good reviews, word of mouth, and press coverage. This is part of why sometimes the wisest choice is not to have a demo.