E.g. it's now about the delivery of a service rather than the challenge of building it (e.g. the moat) and then the delivery of service of it afterwards. Non functional requirements like data management and security, legal requirements and hosting are still valuable things that aren't front of mind for most developers creating their own tooling.
Imo a better distinguisher of demos and products is: "is your thing CAPABLE of solving a real problem" (even if it isn't doing so at a scale atm). Google+ was a product (not a super successfull one), eventhough it didn't have many users. Conversely, a viral interactive gimmick can attract millions of users in a day without really being a product at all.