The few demos I've tried that required iLok did not require the actual DONGLE - only the account, which is free (I think???).
The iLok works great for me. I spent the bucks without regret, and I'm not professional, just a dabbler. It's quick and easy, in contrast to many other registration processes. With iLok licenses, the process is always the same, as opposed to individual license systems. I can use all the iLok plugs on all systems, all accounts on THIS system, and upgrade or reformat my system without hassle (as long as the plugins themselves are supported). Win win in my book. But I realize many people hate the iLok with a passion!