just because the PCs are called "Demons" is no reason to buy into the whole "demons are evil and will seek to subvert your every order and tear your heart out at the first opportunity" shtick

Yes! If we play this one, I will be sure to make it explicit. The PCs are called demons by a bunch of people who are justifying treating them like complete crap. There is no reason whatsoever for the PCs to buy into it.