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Regarding the best demon lords...
I've gathered quite a collection.
Here he is again – Melkor Baugliir, the first and only.
Father of Dragons
King of the North
Lord of the Elements
Master of Diplomacy
Great Educator
Great Humorist
These aren't prisoners; they're raw materials.
Philosopher
The subject of worship of the first organized religion in Middle-earth
The archetype of all fantasy and a significant number of cartoon villains
P-progression.
Nenuacho.
A butterfly is essentially the same as a caterpillar. And a caterpillar is a pest, causing famine, plague, and, if you're lucky, riots, wars, and cannibalism. A true spawn of evil, far more so than orcs and dragons.
This is how his enemies see him.
And rightly so – let them fear.
Relatives, you see.
All evil comes from them. Or rather, all good comes from them...
This is almost canon, by the way. So, it's Varda (that's the same "Elbereth, Gilthoniel," if anyone doesn't know) who is to blame for everything. She chose the weakling and milquetoast Manwë, whom she then manipulated as she pleased – and Melkor went completely berserk after that.
Hey, where's Melkor?
Oh, never mind. Tell him hello when he gets back.
Although, you probably won't have time for that...