On what basis did you form this opinion? How do you know how the NPC thinks? The only way to test this is to play the game.[
I'm playing on Hero difficulty with a friend, I installed a mod that increases the difficulty of neutral creatures, and Eva (because I can't update to 3.1 without it), and a minor mod that swaps the building locations for Inferno and adds a few new ones. In the late game, the demons barely had any army, and their castle was only half built. In any case, I think it's worth increasing their intelligence; they are already too weak, and with these changes, the NPC from the castle won't be able to field an army for a couple of months.