In AD&D materials (both editions) Iuz is always flagged as a demigod. Given that he's the sun of a Demon Prince and a mortal witch, I've always taken that to imply that Graz'zt is a god."Iuz, god of pain and oppression CE Death" He must have had a really major religious awakening in the expansion for Greyhawk that was never released.
EDIT:
From the GH boxed set campaign book, pp 27, 71:
Iuz, old Iuz of fearbabe talk, may be human - or may once have been human, but this is not known for certain one way or another. . . .
For many decades . . . Iuz had been trapped by the mirthful and mad Zagyg, locked away in a strange chamber deep below the ruins of Greyhawk Castle, one of nine powerful demi-gods so confined. These prisoners were loosed in 570 CY . . .
Whether Iuz is a human who ha become demon-like through the centuries, or whether he is a semi-demon, a cambion (as some suggest a by-blow of Orcus), no mortal knows. He is, however, the first known godling of chaotic evil . . . Few creatures beyond the boundaries of [his] domain will speak his name, let alone adore him. . . .
Iuz is rumored to have a soul object secreted on the Abyssal Plane dominated by the demoness Zuggtoy (sic), with whom he is known to consort. He is thus free to roam outside his domain without fear of permanent harm.
For many decades . . . Iuz had been trapped by the mirthful and mad Zagyg, locked away in a strange chamber deep below the ruins of Greyhawk Castle, one of nine powerful demi-gods so confined. These prisoners were loosed in 570 CY . . .
Whether Iuz is a human who ha become demon-like through the centuries, or whether he is a semi-demon, a cambion (as some suggest a by-blow of Orcus), no mortal knows. He is, however, the first known godling of chaotic evil . . . Few creatures beyond the boundaries of [his] domain will speak his name, let alone adore him. . . .
Iuz is rumored to have a soul object secreted on the Abyssal Plane dominated by the demoness Zuggtoy (sic), with whom he is known to consort. He is thus free to roam outside his domain without fear of permanent harm.
So there is no assumption here that being a (semi-)demon and being a (demi-)god or godling are mutually exclusive.
From the From the Ashes Atlas of the Flanaess, pp 28-29, 94:
Iuz himself is believed to have been born a cambion, a cross between a great tanar'ri lord and a femal human necromancer, Iggwilv. . . .
When Iuz was locked beneath Castle Greyhawk, his homeland was able to wait for its master . . . When Iuz was freed in 570 CY, he had great plans for the Flanaess. Risen to the power of a demi-god, Iuz has achieved more than a few of his initial goals. . . .
Iuz can be slain while on the Prime Material plane. If this happens, he is banished to the Abyss where he has a hidden soul gem . . . his palace holds a permanent gate to the Abyss.
When Iuz was locked beneath Castle Greyhawk, his homeland was able to wait for its master . . . When Iuz was freed in 570 CY, he had great plans for the Flanaess. Risen to the power of a demi-god, Iuz has achieved more than a few of his initial goals. . . .
Iuz can be slain while on the Prime Material plane. If this happens, he is banished to the Abyss where he has a hidden soul gem . . . his palace holds a permanent gate to the Abyss.
The 2nd ed version seems to suggest, in away the 1st ed version doesn't, that Iuz's status as a god is different from his demonic heritage. Though it does not have the sort of definitive tone some in this thread have used.
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