Nature also opposes death, judging by the Necromancy Ward, and Barbarians are neutral, which is clearly visible in the tavern. Apparently, the opposition is structured differently: Life, Order, and Nature against Chaos and Death. Since Demons can be attributed to both Chaos and Death, it would be logical to place them in one of these Castles.
Why don't I quite accept the "mechanical" division? Because Death has two Castles that are opposite to Life and Nature – that's understandable; Life has Death and Chaos – more or less understandable; Chaos has Order and Life – similarly; Nature has Death and Order – it's already not very clear, just like Order has Chaos and Nature... mechanically, Nature and Order are opposing, they reduce each other's morale to the maximum, but "logically" I find it difficult to imagine, it's not so obvious, if not downright silly...
In short, if you swap Nature and Barbarian, everything would fall into place. Barbarian gets along well with Life and Chaos, and opposes Order and Death well. And Nature, by its very nature, is an excellent neutral Castle that can do without neighbors and oppositions. Let Nature keep only the Druid, it can do without the Archer. Which hero should be given to the Barbarian to pair with in the tavern?