The story doesn't work terribly well for me because the "demons" turn out to be humans with a fairly clever means of holding their land who haven't done anything wrong except scare people.
It also isn't clear why they're using that method when people generally seem to be living very peacefully with each other.
"Scooby-Doo Rationality" may form a subset of rationality stories, aimed primarily at young children.
Tell us a story. A tall tale for King Solamona, a yarn for the folk of Bensalem, a little nugget of wisdom, finely folded into a parable for the pages.
The game is simple:
This isn't a thread for developing new ideas. If you have a novel concept to explore, you should consider making a top-level post on LessWrong instead. This is for sharpening our wits against the mental perils we probably already agree exist. For practicing good thinking, for recognizing bad thinking, for fun! For sanity's sake, tell us a story.