Still, I feel demotion is for example, breaking Imperial Law and striking in a city, getting caught, and being sorry about it to your Sect Leader.

If in the above, the Imperial were to just shrug me off or beat around the bush about it, I'd anathema him.

Demotions can be for other things, let's say someone is on the cusp of donations and obviously doesn't care about it. As Sect Leader, I'd give them a warning about it, if in a week it was still the way it is, and the Blade was apologetic about it and had good reasons he may either get more time or might get demoted. If that Blade said something in effect that he didn't care what I had asked him, I would anathema him.

I've played Empire for a long time. My first Imperial was Anathema'ed because of a way I responded to my Sect Leader. I think this was before demotions(if that time even existed I'm fuzzy about it).

I can't reconcile in my mind that I was dealing with someone who just didn't care about what I was saying and for that, it's the anathema button to me.

A simple Hail, War Master when he logged on, or Greetings War Master, or even War Master, and I see this entire scenario playing out differently.