Actually the demo could be set in IC terms. Perhaps as a legendary battle of common knowledge. A story passed down among generations. If you wanted to take it to the extremes even have the battle shown from different perspectives based on the players choosen race, hometown, background, etc. showing the different outlooks on the major event.
Or even show a different battle based upon the background of the character.
A human cleric would see a battle that took place between a holy priest and a powerful demon. The priest sending it to exile where it slumbered... until it was recently unleashed again.
A tribal barbarian could see the deathmatch between tribal elders that determined who would lead them into war against thier encroaching enemies.
So on and so on.
The chance to relive the history could be almost as big a bonus to the demo as the teaching factor.
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