You have never played DnD, GURPS, Exalted, or any other pen-and-paper RPGs, have you?
I loved the way the daimons where played, thats how I play BM and thats how any rpg should be played.
But as like with dnd, alot of players who play it seem not to understand that.
The most fun situations came out of a party member betraying his very own party.