Villager logic:
"I'm hidden in an underground cellar where nothing can hurt me. There is a giant hand brutally killing villagers around up above. I better go up there and run around."
Or it would be cool to see the Demon imp 'accidently' get his target wrong and kill a few innocents. Like burning down a children's hospital to get the reincarny to jaywalk so he can kill him, then realize he was supposed to kill the guy passed out on the park bench the whole time.
I like the idea of these games. A demon imp out to ensure justice is done to all evil doers. Wait..that didn't come out right, it didn't sound Eeviil enough.