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Yes, demons are good too. As far as I understand, they are ranked last primarily because of their not-so-demonic image. They look more like very aggressive and vicious beasts, but still beasts. In *Disciples*, the demons were truly demonic... Wow!
Besides, in *Heroes 5*, their combat tactics are very specific – the lack of defense requires very careful play, while their troops are overwhelmingly (compared to other races) melee-focused and no one has retaliation.
Personally, I definitely prefer demons to mages – not because of ideological or aesthetic reasons, mages are better in that regard, but because of their gameplay capabilities.
