Wow, just wow. NO Demonesses in my game.

[BB Shockwave]

In my first Walkthrough of AP, there were only about 120 Gorguls in the game. I had to use Sacrifice (as a Warrior!) to get the rest. IN my current walkthrough... there are NO Gorguls ANYWHERE. Not that I plan to use them, just checked out of curiosity.

Frankly, I wish units of Elven/Demon/Lizardmen races would appear more often in other islands too. I never have trouble finding humans, orcs or Dwarves, they are everywhere.

Intersting thread, as I am considering using Demons in my next walkthough. On Hard, as on Impossible the halving ability of Archdemon and Charm of Demoness would be of very little use.
I would consider a line-up of Archdemons (skirmisher,hit-and-run), Demons/or Executioners(tanks), Demonesses (support unit/charmer), Demonologists (summoners/ranged attackers) and Scoffer Imps (ranged attack, skirmisher, debuff). I am thinking about using Cerberi instead of imps, I might lose ranged attack, but their new "charge" ability and 3-headed attack would make them excellent blockers for archers, specially with stone skin. As for Demons/Executioners... I might swap them depending on battle. They have similar stats and abilities, but Executioners are slower and thus better tanks, and have one de-buff talent and a de-buff ability, while Demons are jack-of-all-trades: they buff your units, they summon fodder, and they are fast too.