I think the word "demanding" is too strong - how about "enquiring about"? But I agree - it isn't an award for demanding privileges. You have to put in the legwork to become an MVP before being entitled to such privileges. When I spent some time abroad, I was never ashamed to show my student or YHA cards and ask whether a discount was available. Sometimes they said yes, sometimes they said no. You may not like the fact that YHA members get 10% off admission to the aquarium in Sydney, that students sometimes pay less for flights, or that MVPs can blag free software, but you really can't blame people for playing to the rules of the system by which they are bound.
Here is what the Friends of Red Gate web page says:
At Red Gate, we take our relationship with the SQL Server and .NET communities very seriously. This has led to our creating a program entirely for valued community members.
The Friends of Red Gate program is aimed at active and influential community members, such as popular blog writers and community site owners, as well as those MVPs who are experts and gurus in their relevant fields. These people have ideas and opinions about the technologies they work with and, over time, they have come to know Red Gate, and our products, well.
The purpose of the program is to give valued people in the community the chance to use and review Red Gate's tools, allowing them to become better informed about the capabilities of the products and, therefore, able to help others who are having problems which could be solved using Red Gate's tools.
If you are an influential community member, expert, or guru, and would like to know more about this program, please contact Rachel Hawley for more information, explaining why you think you might qualify.
This suggests to me that Dinakar is well within his rights to apply for membership. Red Gate may or may not form the opinion that Dinakar is a "cheesy cheapskate" and refuse his request, but if they don't, then I shall be happy for him. It's clear that Red Gate don't do this out of the goodness of their hearts; they do it because they believe that such people will influence others to use their products.