I thought it was odd that all the demon buildings contained (mostly) Demon's Chests instead of vanilla Chests, but then I saw the code that notifies the Demon Portal when one of these chests is open. I often break chests instead of opening them (also helps me know that if I see a chest there's probably stuff in it). The demons don't seem to mind if I break their chests, but do mind if I open them. That doesn't seem right.

Also, once harvested I would like to use the Demon's Chest in crafting recipes that require vanilla Chest.

Can the Demon's Chest be modified to notify the Demon Portal when harvested and then drop a vanilla Chest? That would be ideal for me.

I've solved the second part for my server by adding a shapeless recipe with MineTweaker to turn a Demon's Chest into a vanilla Chest, but having Blood Magic handle it would be better.

Will fix in the 1.8 rewrite.