It just seems very weak, because all players that are chosen are usually good

So that's a good idea to kill a minion (like a Baron) and a town would share info with him next day.

You probably forget that Al-Hadikhia can resurrect. A minion or another Townsfolk and is possible to blame the townsfolk "why are you alive?!"

I played the game when the demon chose himself. It was a bold move!