The DRMEven with the option of a demo mode there was a lot of problems with the demo mode, for instance how it checks if you own the game was depended on your internet connection. If you had no internet connection, you could not play the full version of any of your games unless developers built something around ouya's DRM. This was a huge problem for gamers, and developers, but news sites wont cover something like this because they don't do research. Half of them reposting the stories I am sure don't even own a ouya.
Developers conflict of interestMany developers who are putting things out on the ouya want to be able to profit, many of them are either just starting out, moving away from mobile because of issues with mobile gaming, or just simply trying something new to them. With them in the past having to put out these free demo's they would have to work around ouya's framework, they would have to go the extra miles just to get it working. For many developers this was a internal conflict and only pushed some away.
Framework support issuesWith additional game engines and additional environment to work in and make ouya games there was a repeative problem of dealing with purchases, and getting them to just even work. With "support" from engines like construct 2 with cocoonjs being problemadic left and right and lack of instore support this became a real problem for developers like myself. I had delayed a game I had improved massively for several months to get problems fixed most of which still arn't. I still have major performance issues do to cocoonjs & construct 2's shotty support. With there being no requirement for free demo's it is literally one less thing to worry about with using engines and different frameworks.
In conclusion the removal of this requirement is one of the best things they could have done, just leave it up to the developers instead of trying something they may not like. For gamers the always online DRM was a living nightmare far worse than the wifi/bluetooth issues. For me it was the smartest thing ouya has done in a long time.