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Ask here on the forum if anyone thinks demons can compete against the other factions... there are a few heroes who can, but most won't be able to. You yourself said that the Necromancer wins against the Demon. (By the way, Deleth is a cheater).
Firstly, it has the most difficult start because it lacks archers (the jumpers risk taking double damage).
Secondly, after the new update, the Succubus is no longer a good choice for the hero's army (it's better to make a Demoness), but for the beginning, you can use Temptresses. (The trick is that if they seduce someone, they don't really move anymore – they'll most likely die from ranged attacks or magic).
Thirdly, some of the Demon heroes have the most absurd starting skills, especially spellcasting – what do demons need that for at the start? Chaos magic is also not very effective; the mana pool is small. The only good thing is that Nimue with luck is good, Marbas with defense is also good, and Grok with teleportation is also good... And then there's the cheater Deleth (that's a different story).
Fourthly, if you play on Veteran or Hero difficulty, as soon as you see Dryads or Assassins on the map or guarding a mine, you'll want to give up because you can't defeat such weak enemies without losses, especially with Demons... if there are other mobs, you'll have to struggle near the sulfur crystals and the samcvets; ranged units will definitely be there if not mages (the Rangers of the Elves are just brutal).
Now it's up to you to draw your own conclusions!