This might be an unpopular opinion, but no it's not understandable. It's being a dick. I can understand not releasing FLAC to prevent fakes passed as authentic copies being sold, but there's no good reason to not share 320 or 192 kbps mp3. Music is meant to be heard and enjoyed, not hoarded like a douche. We have good mp3s of Flyswatter, Demo 2, Buddha, Short Bus, Enema demos, etc. The Dude Ranch demo should be shared as well.
I would love to hear this demo and have a copy in mp3 but sadly those who have it would rather hoard it.