Regarding a large army, demons have plenty of them! They often outnumber all my troops! And there are usually quite a few of them! (This is due to the bonus increase in the castle, the stables, or whatever it's called). If they are well-positioned, they attack immediately (their high speed almost always allows them to reach me), and if they are not, they call for reinforcements.
Yes, it's tough for the Elves at the beginning, but it's not much easier for the Demons in general (unless it's Deleb). The main strength lies in the Dancers and Druids. Archers are, of course, also important, but it's better not to use them in battles with "bad" neutrals. Also, for a faster start, don't forget about the hero: Chaos, Enchanted Arrow, Deadly Shot. The relevance of Chaos increases even more due to the opponent: if you are wary of machines, then "Deadly Cold" will be an excellent response to the machine operators.
If the main strength is Dancers and Druids, how do you use them to defeat mages or at least any archers? Do they need upgrades?
I know about Deadly Cold. But I don't level up magic at the beginning. I level up magic towards the end, after levels 12-15, because I also don't build the Tower of Magic too early! But about Deadly Shot, that's interesting... Tell me more, I still haven't figured out how to use it correctly.
And finally, I would like you to describe the hero's build (the most suitable one against the Demon)