On the part of miscomunication and the community disagreeing with some demotions part I must say those two shouldnt be associated. I mean... It does make sence in my opinion why a mod gets demoted shouldnt be told, its none of the normal players bussines.
I know many (and Ive found myself in that situation too) disagree with demotions sometimes just because they like the person and they think he/she is cool... but it must be understood that theres far more than that to a mod, one awesome person who is a mod can be extremely lazy and not do his/her job and get demoted, but that would be a deserved demotion because of what Ive stated before, theres more than just how much of a good person the mod is.
Ill give a very personal example, a couple of month ago I got accepted as mod and never got to finish my interview due to personal problems on my end... but as time went through, in the end, I decided not to ask for the interview again becasue I thought of how good I would do my job as a mod since I wouldnt be of much use to catch hackers, because of the extreme lag Ive always played with, which are MCSG's main concern and I would have only been useful to punish those who swear or insult other players (who are far from being the main concern). Thats why I decided not to be a mod after all (as much as I wanted and want to be), it would be one more space to give a chance to someone else who would make a better mod and also because I knew sooner or later I could make a mistake because of the conditions in which I play.
My point is... you can ask around and youll probably find people who will say they like me and that Im a good guy and yet I wouldnt have made the best mod, would have been demoted evetually for understandable reasons and people could still complain because they liked me, the story would be too long for the staff to explain why and in the end it wouldnt be worth the trouble.
I dont think theres much miscomunication between the staff and the comunity, and the little bit there is, is not on this topic.
Remember this is only my opinion though!