I always find this topic interesting to look at. Most people believe that Fae are just in Peter Pan and Snow White, but as Wiccans and Pagans, we know better. The Fae are several creatures put under one category. (Gnomes, Angels, Faeries, Brownies, Succubi, Demons, Devils, ect.) This is a popular belief that these creatures help bring out the balance of nature (good and bad) to our world. However, according to Folklore, there are stories about Fae blood and Human blood mixing. The Fae are said to be very lustful and, for lack of a better word, horny. The Fae aren't really interested in their kind though (according to Legends) they are interested in the nonmagickal (humans). So, they usually come out on most of the Sabbats. Most commonly seen on the Beltane and Samahain. The conversation I want to start is if you think this legend, or let alone these beings, are for real. Everyone I have ever discussed this with have very interesting opinions and outtakes on this subject, so lets see where it goes! :D
Personally I don't believe in any legend of human blood mixing with anything else except for other human blood. There are a few myths about half human children but I believe these are probably started simply by the event of a child being born with features not of the "norm". During the era when these tales evolved we had a poor knowledge of medicine and genetic disorders and diseases were often misunderstood to be of magical origin. From this I've personally concluded that all these creatures are "not of this world" in the same way as us, basically I don't believe they are now or ever were physical beings, I'd have expected a larger footprint of any species that was influential enough to partner with humans.
To correct myself: I did mean that fae are not very lustfull. Succubi are but I dont believe they are fae.
As to the them being creatures a flesh comment. I agrea they can have lust but I dont think they are as lustfull as Cicatriz talks about them being. They are probably no more lustfull than humans.
I don't believe in a literal mixing of human and fae blood. Instead I believe that when the stories make reference to someone being half fae or god or whatever they are simply trying to explain the abilities of that person. Also in some cases it seems to suggest that that person has a closer bond towards nature and spirituality.
Demons in the traditional since are most definitely fae. However the common idea of demons isn't.