My theory on who and what Daemon is (besides a supervirus, of course) probabaly isn't all that original. I personally believe she is very similar to The Borg Queen from Star Trek.
Imagine if you will. You are on a dark ship that is suitable for the Web. It has been sailing for cycles in search for a new system to conquer. Deep within the ship is an even darker and creepier room. There's countless gizmos and gadgets. An alarm clock goes off, then several of the gizmos whir to life. A tube opens up to reveal a woman's torso. Its pushed out, where along the way her arms and legs are attached. When its standing in the center of the room, her head, neck, shoulder, and spine are lowered. The top merges with the bottom and there you have her, Daemon.
A possible catch phrase is: "Resistance is futile. You will be infected."
I know I know. Its not the best image out there, and probably not the most original, but its with me and it won't leave. Besides, if Megabyte can have detachable limbs, why can't Daemon?