If a band produces unmarked copies of a demo on CD-R, does that count as a physical release? What level of professionalism is necessary to constitute a real physical release?

As long as the physical format is distributed to the public the level of professionalism is irrelevant. Only thing is of course that with such a demo you'll need more than just a picture for proof. A link to where the demo can be purchased, for example.

Alright, thanks!

You really are a savior in the S&C forum, EntilZha, you answer every question within minutes, lol.