I ended up going along with the Merchant's request to accept the Demon Queen, Elizabeth, as a citizen. Before that though, I wanted to see for myself how willing she was, and so, questioned her about what caused the war that the Merchant had shown me.
I know that he had done it to make me sympathize with her but I couldn't take the things I saw out of my mind, I needed at least some answers about it.
Elizabeth: "The previous Demon King... My father... had an incredible Gift that allowed him to obtain both Demonic Power and Divinity. He acquired so much of both that he acclimated with it and developed a way for others to do the same."
On the note that the Merchant left behind last time, there was also something about this technique.
Since normally by acquiring Demonic Power you would subtract your Divinity, only someone who was already capable of obtaining both through a Gift could come up with a way for others to do the same.
