"If you don’t have a Google+ account you can start or join a limited hangout, which only includes the option to hang out with 1 other person. If you’d like access to all Hangouts’ features including the ability to hang out with up to 9 people, share your screen, and use cool Hangouts’ apps, you can upgrade to a free Google+ account at plus.google.com"
Shit that sucks. Despite its bugs Hangouts is a great product I use multiple times a week, sometimes daily. Now I'm going to have to create a fake account just to use Hangouts.
The same reason you have to jump through hoops with third party tools to download apps from Google Play without using a Google-approved device. They want everyone to be fully immersed in the Google experience.