Online demo and distribution is the way to go - no question. According to the latest Pew Internet and American Life Project report - about 55% of all internet users have broadband. (http://www.technewsworld.com/story/33471.html).
That number has jumped substantially in the last year or so - meaning it is sure to climb more. Look at the number of people who simply use the internet compared with just a few years ago. Telltale is smart to jump on the bandwagon off online distribution only. They will save tons of money which translates into more money put into their products = good for us!