Hi! I agree there should be move firm guidelines to differentiate {{AlternateVersions}} and {{NotableCover}}. From what I remember when this sections first popped up, the {{NotableCover}} section is meant for versions of songs which did not involve the original producer (i.e., person who wrote music, lyrics, and/or did arrangement), but were either a spin-off with different lyrics or had a lot of views. Other versions which did involve the author were generally put in the songbox, which was later split off into the {{AlternateVersions}} section. Therefore, I agree that all self-covers should be in the {{AlternateVersions}} section. I also agree with putting demo songs in the {{AlternateVersion}} section, though I think we should specify (as was done with the Demonstrations category) that only demo songs for commercial voicebanks can be added here to prevent e.g., UTAU cover demo songs from being added. I'm also fine with the current policy on PJSK songs. I'm also wondering whether it may be easier to make the rule that songs in {{AlternateVersions}} should either be (1) uploaded on one of the accounts of the original producer(s) or (2) be featured on an album by the original producer(s)? This would exclude demo covers, though.
Sorry for going a bit off topic, but since we're talking about it anyway: @Aruo also brought up on my talk page that the rules for {{AlternateVersions}} aren't listed anywhere and aren't consistently applied. So in addition to what was already said in this thread for AlternateVersions I'd suggest that (1) the version with the most views should go in the songbox, while (2) previous/succeeding versions with significantly less views should go in the {{AlternateVersions}} section. (3) If both versions are about equally popular (e.g., both have ~100,000 views or something), the earliest version should go in the songbox.
Sorry for the mess, this comment is a bit rushed.