You guys are thinking in terms of PCs. In terms of consoles (PS3 especially) this is genius since you can get into the game, then grow generally weaker and then popup! "Do you want to buy the game through PSN?" It will also let you use the character data and saves from the demo, which is nice. It's genius for the PS3 because that console is notoriously hard to crack. Besides, if the consoles hardware DRM is cracked, they can download the game and play it anyway.
Any demo that lets me play the actual game, even if it's for a shortened time, is fine by me.
How briliant is this idea anyway ? So when another developer tries to do the same thing, they can't unless they pay Sony ? There is absolutely nothing new in this idea, nothing clever, no miracle programming here, it's just a simple time quality implementation.
What kind of stupid patent system allows for such a patent ?
I think if it works properly, this will be nice. I personally don't purchase a game without a demo, even if it means pirating and then going back and paying for it. TBH, the people who pirate will always pirate. This won't make it much harder to do that...