I feel sick when I'm told it's wrong.
I understand your frustration, and of course I wouldn't like to get in the same situation with false hope.
However we still reserve our right to refuse your withdrawal, as you used bonus demo funds to play our game.
Is there statement in your ToS stating that you can't withdraw if you have no deposit? Because if there's not, I think you need to add this in your FAQ also. No deposit, no withdrawal. At least, be clear for future players. This will clarify also for some users who will take advantage of your demo funds. Because there are really players that can grow their bankroll even if it is only coming from freebies on the site.