SPOILERS!
The other answers above seem valid, but here's how it struck me:
"Both sides now" seems to be both sides of the line between life and death, or good and evil. I think it applies to that "Paiman," who had been in Hell up to now, but would now experience life, ruling his subjects on Earth. His is the face we see for most of the duration of the song.
It could also apply to Paiman having inhabited Charlie's body, then that being "corrected" and he's now in a "proper" male body. So, both sides of the gender line.
That last thought explains for me the "click" sound Charlie made was really the demon's sound, which Peter's body inherited. It also could be why Charlie had a boy's name. Paiman was supposed to have inhabited a boy's body.
I suspect Annie's soul was long gone due to her trying to kill Peter in the womb. By that time, too, the demons involved would've known they'd need that body later.
Honestly, I don't like thinking about this stuff too much. It's probably analogous to fooling with a Ouija board. If that dark side exists, I want to keep it distant.
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