Great story, I love reading about companies with CEO's that really have brains. his stance is very logical and not without merit. There was a lot to be said for shareware and to a lesser extent demos. Their major drawback was usually the method in which the labels opted to cripple the software to create the "incentive" to purchase the full version, ie. expirations, reduced funtionality, banners, etc. Those aren't examples of incentives, those are irritations that I believe in large part pushed people to pirate.
So here's a thought... release the game, a fully functional, playable and enjoyable piece of software in its own right. You know, something that leaves the end user actually WANTING MORE, without penalizing said user for not having actually bought a stupid box and disc to clutter up the desk. That way, if they made a good product, people will want to fork over the cash for the game in it's entirety... and if they made a crap game, well, they'll know it was their own fault.