Random, MSoC was not replaced by the SW2K demo. They are two completely different things, the only commonality being Zelda.
MSoC was dropped, yes, but only due to errors between the other two Oracle games, and the fact that the developers were having trouble finding the origins of the errors. Like I said, the reason there are only two Oracle games is because Shigeru Miyamoto himself told them to drop MSoC.
The SW2K demo was just to show off the Gamecube's graphical prowess. You could say it was replaced by Wind Waker, but it would be more accurate to say that the Wind Waker was made separately from the SW2K demo. In fact, it was cel-shaded because of Shiggy's influence; he thought the N64 games were too realistic for the Zelda universe; hence the cel-shading.
TFS, you are right. Have a cookie.