The reason for Pluto demotion from what I have read
http://en.wikipedia.org/wiki/Solar_...06_IAU_Resolution_on_the_Definition_of_Planet
Basically the term of "clearing their neighborhood"
The key difference between planets and dwarf planets is that while both are required to orbit the Sun and be of large enough mass that their own gravity pulls them into a nearly round shape, dwarf planets are not required to "clear their neighborhood" of other celestial bodies.
http://en.wikipedia.org/wiki/Solar_...06_IAU_Resolution_on_the_Definition_of_Planet
Basically the term of "clearing their neighborhood"