I guess what I'm really asking is what "This character" refers to on Imitating Evil. Does it refer to the character Imitating Evil was played on, or Imitating Evil itself (as was my original thought)?
That was my understanding as well- that Imitating Evil is referring to itself.
If that's the case, then it would seem to me that:
1. Imitating Evil becomes The Deceiver
2. Imitating Evil's old band ability bands The Deceiver in
3. Imitating Evil exchanges
4. The Deceiver exchanges
My reasoning is that Imitating Evil gains the abilities of the copied card
after its printed abilities resolve. So the printed abilities would resolve first, meaning the band would resolve and
then the exchange that it gains through the copy.