I've been intrigued with the Collins Elite story ever since I first heard it. Although I don't think that UFOs are demonic (I'm not sure that even demons are demonic), the idea that *any* faction of the American government would seriously study the UFO phenomenon, and then leak the info out, is significant. And if you strip away the Christian fundamentalist distortion from the group's research, you are left with several interesting observations...
First: Redfern suggests that the group concluded that abductions are real events, or are perceived as real by the experiencer, but that they are "holographic" in nature. This is not too different from the observation by some researchers that the abduction experience, though real, is fundamentally non-physical; analogous to a lucid dream or an out-of-body experience. This would explain the paradox faced by many students of the abduction phenomenon that there is little or no physical evidence of abduction, despite the detailed narratives presented by the abductees, who always insist that the abduction was a physical event.
This is NOT the same as saying that the abduction experience is hallucinatory or a confabulation, which is the mainstream scientific view... although science presently does not recognize any state of consciousness outside the narrow band used by adult humans during the waking state.
Second, there's the conclusion by some that Earth is essentially a Matrix-like environment that is being farmed, impersonally and mechanically, by the Greys for the purpose of harvesting human "souls." In fact, Nick Redfern uses the analogy of "grazing cattle" to describe this faction's viewpoint.
While people of all ideological stripes would likely find this notion repellant, I think that it's a valid--though heavily distorted--construction. It appears, more or less with the same bovine terminology, in OOBE adventurer Robert Monroe's 1985 book "Far Journeys." In Chapter 12, Monroe indulges in a lengthy allegory depicting Earth as a "Garden" that is seeded and tended by "Someone," laboratory-type beings who cultivate--and frequently harvest--earthly life forms for the ultimate goal of obtaining "Loosh" (reminiscent of the Dune series "spice"). Humans are depicted as unaware cattle, awaiting slaughter. There is much to his allegory, and I won't try to summarize it (but it has a surprise and positive ending, and I encourage everyone to check it out), but Monroe's allegory is essentially the Creation myth, updated for the twentieth century.
Just as we can adapt the Creation myth with contemporary language--"In the beginning, Someone designed and manufactured the physical world"; or, "If you wish to make an apple pie from scratch, you must first invent the universe"--so we can appreciate genuine experiencers of the UFO phenomenon as presenting information of value--however distorted by lenses of ideology, fear, hope, and belief.