OK, I played around with the logo in photoshop. It definitely looks better as it is.
That's pretty awesome, I thought my job was in danger there for a second! It'd be fun to show the process of the Demigod logo development from sketches through revision to its final form. There were many, many iterations. We did actually try the D's facing off but it didn't carry as well as we thought initially. In the end, we were very happy with this particular treatment and typography for carrying all of the various elements of the game in one package.
You get +1 karma for attention to detail!