I'm thinking there might be some mystical stone, a gateway to hell, or something mystical that allowed demons (or Dixie specifically) to slip into the reality and influence the town, because we have nothing to go about how desolate the town is! Also, Lorie (I'm going with Lorie for now) might have just been desensitized to killing because of how necessary it is to hunt prey to survive, I don't imagine Joseph's farm can spare for the rest of the "townsfolk" when most seem to go to production factories and stuff. So maybe to her, she might just view the world in a more of "survival of the fittest" or that "every man for himself" kind of mindset.
Also, real on Joseph. I love how tragic and unhinged he is as a result of all the trauma he endured. I need more of him being pathetic.