I went Norse and a bit dark with the Dwarven nation of Drakr. Instead of an organized "Demonocracy" I just have more vague references to Dwarves making deals with dark powers to throw off oppressors and conquer neighbors. I tied their pre-eschatology belief system in more closely with the Titans (particularly Voice of Rot) and made it more overtly Norse. Here's a section from my player's guide;
Beliefs and Legends
The dwarven tribes worshiped many gods: Moradin the All-Father, Loki the Trickster, Thorun the Thunderer, and other gods of hearth and battle. Others worshiped darker powers, such as their fiendish allies from the depths or Nidhogg, the serpent lord of death, who gnawed at the roots of Yggdrasil, the living firmament of the world. Though their gods, religions, and beliefs vary greatly by tribe, all myths of the dwarven people agree on how the world will end.
The Great Winter
There shall come a Great Winter unlike any other the world has yet seen. The biting winds will blow snow from all directions and the warmth of the sun will fail, plunging the earth into unprecedented cold and darkness. Mankind will become so desperate for food and other necessities of life that all laws and morals will fall away, leaving only the bare struggle for survival. It will be an age of war; brother will slay brother, father will slay son, and son will slay father. The moon and sun will be devoured and disappear from the sky. Yggdrasil, the living rock upon which the world is built, will tremble, and all the trees and even the mountains will fall to the ground. The chains that have been holding back the monstrous wolf Fenrir and other titans will snap and beasts will run free. The mighty kraken who dwells at the bottom of the ocean and encircles the land will emerge from the depths, the heroes of the dead will rise, and giants will invade the kingdoms of man and dwarf. The world will be frozen into ice, and Nidhogg will avenge all wrongs by crushing the dark and frigid world in his coils, destroying it utterly. If those in the final hopeless battle fight valiantly enough, the world will be reborn and rebuilt as new; otherwise even the history and memory of this land will disappear.
Triumph of Philosophy over Religion
Over the past century, belief in gods of all sorts has faded. The dwarven nation prides itself on practicality, and belief in a myriad of gods, titans, and fiends who no longer manifest themselves in this world is difficult for citizens who believe in what they can see and shape. These cultural predispositions have led to a rise in a dominance of philosophy over religion throughout Drakr. It is said that a dwarf will continue to argue a point of philosophy until the flow of his words erodes rock.
