1) Who knows. I think part of the Divine Divinity backstory though is that the Seven Good Gods opposed the dark god, the Lord of Chaos because he created an intelligent race of beings - demons - to be his slaves.
Yes, here it is, Zixzax the Almost-Wise said it in the Council of Seven chambers in Divine Divinity:
Zizzax: Ziggurunt meggrax! Shut up and listen! One of the Gods, called himself Lord of Chaos. He broke the rules and made intelligent creatures to be his slaves. He called them demons, and that succubus you killed is being an excellent example. Zix zzix!
Divine One: So demons were the first intelligent race?
Zizzax: Soodix. Yes, indeed. They the oldest and be hating the newcomers as they call all the rest like you and me. Other Gods got angry at Lord of Chaos and tried to kill the demons. But that not work so Gods made their own intelligent races to fight by them - elves, humans, orcs, imps, dwarves, trolls, lizards... all of us who not demons, in fact. Understand?
So the Seven Gods answer to demons were the races of Rivellon, not angels. But who knows, continuity in the Divinity universe is a bit shaky.