I agree regarding the need for update.
On the other hand, I think it's not a bad idea to wait until you have something stable, like the long-anticipated final 2.0 (GA). Simple reason is that with a Demo CD after all, you want to leave a good impression, don't you? So having a demo CD that crashes on bootup due to ACPI for example...

Ouch. You cannot afford to have something like this. I'm pretty sure they won't miss on updating the demo cd once it makes sense.
But again - sigh - this is Mensys: A simple update/status notice like "BTW: The DemoCD will be updated to the 2.0 code level as soon as the remaining top stability issues are solved" (or even less details!) would please the community and give some kind of visibility.
Some things can be sooooo easy. All it takes is a person being dedicated to only outside PR for eCS and keeping folks in the loop so they don't get the impression of being abandoned...
regards
Thomas