Downshift through every gear?

[SovietRobot]

OK - wording was off - and you are correct. In fact I argued w/the MSF instructor that I could stop faster and with more control if not attempting to downshift into 1st as our group all lost points if we didn't finish our panic stop in 1st gear. You can't pass his class unless you land in 1st. errrrr. . .

Agreed = In Panic mode, its very likely the clutch is in. Is there a pre-panic mode vs normal riding?

I was taught the same at MSF although you simply had to clutch in and shift into first at the END of the emergency stop, not downshift while you were moving.
The reason they teach that is so if you have to move quickly again, you'll be in first already and you won't stall the bike because you forgot you were in 2nd gear.