The reason is because the DemiGod's multiplayer code sucks. At first it was blamed on pirates, but stardock has admitted that it's not really the pirates that caused the issue (although they did contribute to it) they just have some very poor design choices. If this was on the 360 it would have LIVE software APIs backing it and it would have made the stuff that stardock and gas powered games didn't know how to do easy and it would also have voice chat.
Gameplay wouldn't be affected much as demigod is NOT a real RTS it's a hybrid RTS/RPG/Action game.A controller can more than capably handle controlling one character on screen and with a small map. RTS games typically fail becuase it's hard to controller many units, build/goto multiple buildings and areas of the map. DemiGod has a small map that is easily navigated by scrolling around and it only has 4 item/skill slots. in fact I bet it would play better on the 360 or at least just as good (unless you're just can't handle using a controller and you need a mouse in your hand).
It's sad for such a fun game to be crippled like it is because of crappy net code. It's hurting sales of the game which in turn hurts the games online component. Oh and it's pretty much an online only game. It has an AI skirmish, but the AI sucks. Oh and it gets worst for online right now because every single game I have played has at at least 1 AI DemiGod in it but most it's has at least two and sometimes 3 computer AI demigods. So right now the multiplayer is pretty much just like the single player.
I wish this game didn't have these issues because it has so much potential and it's really fun and easy to pick up. Maybe they'll port it to the 360. I would say PS3 as well, but with the PS3 they have to write their own netcode, so you'd pretty much get the same garbage they have on the PC right now.
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