No! That is not what I mean also. The book itself describes the demons level of abilities to be static. When the demon is level 1 they stay at that level. When they are level 5 they stay at that level too. They don’t get stronger or weaker. They just don’t change.
This is not what most people really thinks/reacts nor was things really this simple. You might be overgeneralizing things too much.
First, you say that that failure leads to insanity. Then you say insanity could be the peak of innovation. That is what doesn’t make any sense.
Is it really that surprising to you that no one decided to permanently kill Tizzy? Do you really need more reason for Tizzy for living that long asside from from others haven’t decided on permanently killing him yet? Do you really also think that Tizzy is that annoying that the other demons wants to really excert the effort or permanently killing him? Also, permanently killing a demon isn’t like swating a fly you know. It do require a great deal of effort.
Well, true, coincidences is very strange in real world, but not in fiction. Authors has always intercept with logic in the stories to make things interesting. Meeting their true love, meeting a person who just have the skills to solve the problem, someone saving the hero at the nick of time, etc. There are a lot of small and big coincidences staple in fiction. Many authors overdo it and it just kills the story. But you have to acknowledge, without these coincidences, the story would just become mighty boring.