Glad you enjoyed yourself.
Overall, the game's story is a 'What If' sort of scenario.
I.e.:
What if Zella took the entire championship seriously enough to sell himself over to a demon?
What if he lost his life, and yet got a chance to live again? What would he do with himself?
What if Zella died protecting his way of life, but was then brought back from the dead to be a tool for someone else's agenda.
As for Lorace, he's someone who keeps watch over the world, and the events therein.