
This is a question that I've had several people ask me, and one that I've heard discussed numerous times. There is a lot of confusion about -why- Pluto is no longer considered a planet, and no one really went through the trouble of explaining it to the general public. Here is my attempt to spread some truth.
Pluto is no longer a planet because, for a very long time, we had no definition for what a planet really was. Before telescopes were constructed, the planets were Mercury, Venus, Mars, Jupiter, and Saturn. Once we developed telescopes, we discovered Uranus and Neptune and for a while, those were the planets.
However, it was suspected that there was another planet beyond Neptune, because of anomalies in Neptune's orbit. When we were observing it move around the sun, the orbit of Neptune didn't seem to fit what we had predicted, as if there was something else further out in the solar system pulling on it.
This was called 'Planet X', which would explain the anomalies in Neptune's orbit and become the ninth planet. This was the great mistake scientists made that led to Pluto becoming a planet, then being stripped of that status. We didn't find an object and then decide it was a planet. We went looking for a planet and found an object.
There is no large body beyond Neptune. The anomalies in its orbit were found to be because the instruments being used to make the measurements weren't very accurate. Pluto was found by random chance, and even after it was found it was considered odd. It didn't fit into either category of planet.
It wasn't a giant ball of gas like Jupiter, Saturn, Uranus and Neptune. But neither does it really fit in with the terrestrial planets Mercury, Venus, Earth and Mars. Pluto is much less massive than the terrestrial worlds but much more massive than the largest asteroids. Combined with its location far in the outer solar system, it was set apart and somewhat outside our understanding of the structure of the solar system but remained a planet because there was no other classification for it.
The discovery of other objects in the outer solar system complicated the issue. Now Pluto was not an isolated anomaly, but apart of a larger system of Trans-Neptunian Objects. Pluto in particular is apart of the Kuiper Belt, a ring of rocky, icy objects past the orbit of Neptune. If it was the largest object beyond Neptune, it might have remained a planet but there are objects just as big or larger than Pluto, like the dwarf-planet Eris.
That is when the International Astronomical Union (IAU) decided to step in. What they did was to give a somewhat standard definition for what a planet is. In order to be considered a planet, an object has to:
1. Orbit the sun
2. Have enough mass to form itself into a sphere (massive things like Earth have enough gravity that large 'bulges' or bumps get smoothed down, literally crushed by their own weight until the surface is basically a sphere).
3. Have enough gravity to 'clear out' its orbit.
Pluto fails the third requirement. What does that mean?
The eight planets are all massive things. Their gravity is very influential to objects in their immediate area. Take for example Earth. There are no other objects that share an orbit with Earth besides the Moon. Other objects cross Earth's path, but by and large the area around Earth's orbit is empty.
Earth has enough gravity that everything that was in its 'planetary neighborhood' was either pulled in by Earth's gravity or knocked into another orbit. It has cleared out its orbit.
Pluto is in the Kuiper belt. There are objects that share its orbit, and none of them have enough gravity to really clear it out. However, Pluto does satisfy the first two requirements so it is a dwarf planet.
Why did they change it?
The definition created by the IAU is arbitrary, but now at least there is a definition. It was decided that losing Pluto as a planet was acceptable, because any definition that included Pluto would also have to include 44 other objects - all dwarf planets under the current definition. Having eight planets is more palatable to astronomers than 52+. In the end that is what the deciding factor is.
Never accuse astronomers of wanting to memorize things.