After a meeting and discussion, the top echelons of the Demon Clan made a decision, to temporarily abandon armed confrontation with the three major aristocratic families and instead begin attempts at appeasing them to foment internal strife.
Luo'er believed that the three aristocratic families were certainly not a monolithic entity. It was only because they had a common enemy that they banded together. Just by letting the situation relax a little, their internal conflicts would start to surface, and if those were aggravated, the Demon Clan wouldn't even need to lift a finger; the three aristocratic families would fall into chaos themselves.
Faced with the hundred-thousand-strong army of the three families, Luo'er didn't even need to think about fighting. It wasn't that they couldn't win, but the casualties would be tremendous. If they insisted on fighting, it's estimated that the Demon Clan wouldn't be able to recover for the next ten or even twenty years.