When they were broke, they spent their only money in recording that demos. MK agreed in spent some of that money recording "Sacred Loving", if it was that bad, surely MK would had said no way we are wasting our only money recording it.
Sacred Loving is part of that demos, historically. But MK decided to delete it from history, as if David never had any chance in the band, when the truth is that he had, at least at that very beginning.