Demon Idea "The Crawling"

I think we do miss a demon that does goes the direction of lovecraft/madness considering how important the madness word in the game is.

"Each night* choose a player to be mad about another player being a demon. If the 'demon' is executed unless it's you, evil wins. If the player decides to break madness, the player is executed. Each night, a player might die."

The idea behind this is that Nyarlathotep loves to spread paranoia and madness. At some point, people might get scared to execute demon candidates, and you can easily pick yourself as the 'demon.' To make people scared about executing you.
Also, if players keep breaking madness, they lose their chance to execute. So they can't keep dodging it forever and might just decide to kill outside of sus demon claims giving you even more room to play mind tricks on them.

The tactic for the good team is to not get paranoid. Just keep collecting info and if they think they have nailed down the demon just go for it.