I think splitting the demons is a question of how large they start. If they start with as much force as others, meaning they can really only expand one way, they it's best for them to be a single faction. However if they have more initial troops than any other faction and can immediately expand in several directions than it's better for them to be 2 different factions, that way they can trip each other up i.e. one head not knowing what the other is doing.

On the matter of demon family tree, maybe it's less a family and more one head demon, his disciples/favoraites in training (babies), then when they mature/complete thier training they assume positions of power and serve as hiers if something 'unfortunate' should happen to their boss and they have to step in and take coomand.

Also although R:TW wasn't as great as it could have been, i still think CA did an excellent job and people are bad mouthing it too much. Remember CA still made the engine and this style of game was thier creation in the first place.