As for a map try Dere Globus (Link: http://www.dereglobus.org/). It's an addon for Google Earth and free to download. Some general information is also provided on Wiki Aventurica (link: http://en.wiki-aventurica.de/wiki/Main_Page). Though the german version is most likely more detailled.
Do they punish the mass population for submitting and worshipping the demonlords?
Maybe but as far as I'm concerned not massively
Are there heptarch armies defending against the ones trying to restore order?
Well, obviosly yes
HAver the peoples of the Shadowlands gone mad?
Some of them yes, but not all. Most peaople either fled or tried to get along with the new souvereigns (or their dead )
I hope that helped you