How is the ending even a question? *spoilers*
There seems to be some debate as to the ending, whether it was demons that killed Kate or David.
The ending was quite clear to me. It was demons. David was not crazy.
David could not have killed Kate. HE WAS DEAD!
"I'd say this cloud is Cumulo Nimbus."
"Didn't he discover America?"
"Penfold, shush."