Here's what we do. Take whatever continent you want to sink, pop a 999k daimon army in the middle. Give the players a little while to freak out, RP the end days and all that. Then, after a week or two of silence, the daimon leader addresses the continent and proclaims that humanity is weak and the daimons are holding a 'proper tournament'.
Then, a series of tournaments are held. Tournaments are to the death. After half the continent jumps ship, you'll have what few die-hard characters left to have a blow-out RP session (fame points all around). Once the tournaments are finished (and the continent champion is declared), the winner fights the daimon leader. If he wins then through some black juju he is transformed into a daimon lord. Plop him on Dwilight with GM abilities and have a rival daimon faction.
