We are all fans of chess. It would be to everyone's interest to promote the game, to have more competitions yearly and let more people enjoy the games. Ranking is secondary. Even if one particular player is lousy, but as long as he has interest, why stop him from taking part in competitions?
Having a demotion system may safeguard the "integrity" of the ranking system. But this will discourage the B grade players from taking part in the competition. They can be young and upcoming players who are already champions in their own respective groups, but still find it difficult when facing the experts. For example, 陈靖龙 and 陈茗芳. This is their first time taking part in A div and they still took part despite knowing where they will probably stand. But they are willing to risk a humbling experience to learn. Same for anyone who does not mind possible humiliation for losing 7, 8, or 9 games in a row. He still enjoys playing, and has the sportsmanship to turn up for every game. Has anyone in Vietnam asked our previous national representative 梁文杰 not to return again?
Having a demotion system may also pressure some of the weaker players to play defensively to prevent losing, affecting the quality of the games. They may hold back against attacking stronger players, which affects the development of their own game. Inevitably, we sometimes look down on other players, but there's always someone else better out there. How would the grandmasters in China and Vietnam think of our standard?
No offence to anyone if I disagree with your views. Just to share my own opinion only.