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Think it's more a case that Konami run the risk of losing out on potential sales by releasing an early version of the game. As Cashis said, there's some who'll take the 1st demo as a representation of the final build and not think that there's a chance that Konami will still be in the process of tweaking any issues.
For me, it can only be a good thing releasing an early demo. Gives us a taste of what's to come and also allows us an opportunity to air our views to Konami on any problems we have with the game. Considering they're riding with this whole consumer-centric image they're trying to appeal to people with, they should listen to what the market has to say, particularly if certain aspects of the game are being called out by the majority.