There are upsides and downsides to both.
On the Xbox 360, all the multiplayer matchmaking is handled by the console maker so the matchmaking horror we've been experiencing wouldn't have happend.
On the PC, developers have to either create their own connectivity (ala RelicOnline, IroncladOnline, Battle.net), license one (like we did with Raknet or others do with GameSpy Arcade).
But you don't get charged on the PC for playing multiplayer so that's nice.
If there was a 360 version of Demigod, the game would have to be simplified. No generals, for instance. So it would be a different game.