It's interesting that in Lenore's model the tertiary function might be placed 2nd from last but this does not necessarily mean 2nd from last in preference - it might be behind only the dominant in preference. But I think it's fair to say that in Lenore's model Ne replaces Ni as 'the demon' for Si-doms, but only if Ne is invoked through under-using the auxillary function (i.e. Te or Fe).
Ne isn't the "Demon" in her model. She later began adopting parts of Beebe's model, so the Demon would still be Ni. The ship order does not correspond to the archetypes. (Which the Demon is apart of).
So are you saying if for example an Si-dom assimilates their inferior function (Ni or Ne though?) to their consciousness/ego then it will not necessarily be 'negative'?
Well, its about you consciously realizing what inferior(and other undeveloped) has to say and trusting what it says, so that you can get control over it. when the function is working unconsciously, it links itself to other function(and looks like opposite orientation, which is where the idea/confusion of 8 function comes from) and pretty much has an unconscious effect to the "parent function" and this shows in negative ways, because the parent function is opposite of the unconscious function(for example INTP looks like he is using Fi, even tho its Fe + Ti that they use).
And the thing with the unconscious(shadow) is that its repressed by the ego, because the shadow opposes the ego. and because its repressed(unconsciously pushed into unconscious), you dont hear what it has to say, unless the message is so big that ego cant repress it. this "big message from unconscious" is usually negative in nature, something big and negative(but it can be positive too, like love). This learning to use unconscious functions could also be said learning not to repress their content. naturally its not like bam now you can use the function consciously, but continual process of learning not to repress the function so much, but first you have to become aware how the function manifests in you and get to know your shadow, to come consciously aware of it etc.
"Where wisdom reigns, there is no conflict between thinking and feeling."
— C.G. Jung