I've seen a lot of games that used the word, instead of "demon". Some even go so far as to simply call them "creatures". A lot of games use alternate words in order to make the games appear less Satanic. I speak this only because I have fallen victim for it, myself. I'll have to agree with the both of you. Yes, they do try to lighten up games, but no, they're not typically gorey games. I've seen quite a bit "cutesy", seems-good-for-kids games that have used other words than "demon" to refer to the creatures that are nothing less than. None of them are violent or gorey, though..and not all use the word "daemon". 'Cause..really..a good hunk of people know what it means, anyway. (most of the time the alternate words are "creature" & "monster", though)
Sorry if I'm just fueling the fire..didn't mean to. ^^;