Huh, for a mercenary that guy sure has a cool head about this kind of stuff.
Bowing your head to a demon must've seem pretty absurd*, but with an army that small it's probably the best thing they've got.
(*imagine a crusader bowing down to a muslim army, but times that by at least 10 since they're actually from different race)
The Hero being OP is a pretty neat way of justifying the common "Power of Friendship" where when the group starts to lose the main character suddenly gets bullshit powerup. Here, he's just that strong to begin with.