I'd guess the reason this was left off TISL was just because it was too long.
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she has a big thing about the songs she releases being positive, and she doesn't like to release songs devoid of hope. That's why she'll never release a song like Space Needle... because the song is about dark material... and doesn't really ever swing back to the positive
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I know she says this, but I don't buy it! A bunch of her songs have no hope or happy ending, more or less depending on how you see the song yourself. She says Dreams has hope, but that's the only example she has ever given. POTU is a not hopeful for a positive ending, and it made the cut.
We just have to get used to the fact that not all the songs will make an album, this is true for every artist...I am happy that we at least have the song as a demo.