The Fae are traditionally quite nasty, or at least act as nature does itself, both kind and cruel depending on its moods and season. The words 'fey' and 'faerie' come from the French and started to replace the Old English 'Elf' during the Tudor period.

The Fae world is of dark enchantments, of captivating beauty,of enormous ugliness, of callous superficiality, of humour, mischief, oy, and isnspiration, of terror, laughter,l ove and tragedy. It is far richer than fiction would generally lead one to believe and, beyond that,it is a world to enter with extreme caution, for of all things that faeries resent the most is curious humans blundering about the private domains like so many ill mannered tourists, lol.

I was really into the Fae stuff during the time I was in Pendragon playing Ariana http://profiles.yahoo.com/ariana_lithilien_of_pendragon, Noire http://profiles.yahoo.com/noire_nelicquele_pendragon & Janel http://profiles.yahoo.com/janel_m_pendragon. Some of my favorite fey races would have to be: The Slauth, Banshee, Fir Darrig, Sidhee (Shee), Tuatha de Danann, Baobhan Sith (wouldn't mind playing one of these again), Black Annis, Devil's Dandy Dogs, Hobthruth, Rawhead and Bloody Bones. The Fae can be very fun to role-play, if you yourself have a very naughty manner and good at trickery. I wouldn't say they were the character for everyone though.

As for those I mentioned, Sumerian in pantheon actually- more spirits than deaemons/demons; though the definition of demon is loosely the same really in simplistic terms. You'll find mention of them in the Necronomicon mainly in the Urilia text or The Book of the Worm & Testimony of the Mad Arab.