Yes but what we're looking at here is: can we use cognitive bias to increase the number of people who pay for the full version.
So you give someone a demo for free. They know it's a demo and they know it's free. They will be cautious about buying a full version.
But if you give them a game for free, and then they find out whilst using it that it's only a demo, they will experience "loss aversion" and are more likely to upgrade since people experiencing loss aversion are more likely to gamble as they try to reconcile their loss.
Android has <15-min "refund" (actually I wonder if this is a "undo" where the payment didn't actually took place and goes through after the timeout, like gmail's "undo send mail", thus avoiding a chargeback)
Also, IAPs allows one to implement the demo/trial/shareware model. Most implementations are poor though, making you think you have the full game/app but subtly (or not so subtly) crippling it beyond usability, or compromising the experience with ads.
(Hopefully they get again in fashion)