Do the Lord's eternal associates incarnate in other species of life to lead persons to devotional service?
Very rarely. For that, the Lord has to incarnate Himself in those species.
Do they incarnate in the demigods society or lower planetary systems like they do in human society?
Yes, but again not as frequently as on Bhurloka because earth is considered to be the most suitable and conducive for self-realization due to the balanced measure of happiness and misery (not too much in both cases). In the heavenly planets, the material opulence is so much that one tends to forget Bhakti easily and in the hellish planets, the pain and suffering is so much that it is quite difficult to remember the Lord.
Also we know that Bali and Prahlada Maharaja are great devotees of the Lord who live amongst demons. Wouldn' t Bali and Prahlada's association change these demons to the point where they are no longer abominable, but great devotees themselves, and they would therefore cease being demons? I am curious as to what kind of demonic lifestyle they could live being around great devotees like Bali and Prahlada.
Shrila Bali Maharaja lives with Lord Vamanadeva in a lower planet known as Sutala loka which is even more opulent than the higher planetary systems. All those born in rakshasha families but having a chance to associate with Shrila Bali while staying in Sutala Loka are no longer demons but devotees. The great devotees even though born in demoniac families do not stay with demons and don't have any kind of connection or association with their demoniac habits. They turn the toughest demons into devotees of the Lord by their merciful association if the demons are fortunate to come in contact with their holy association.
Daaso'smi, BR Sadhu Swami Gaurangapada.
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