I can't vouch for raids and such, not having done much with my warlock once I hit 70, but that build makes me flinch a bit. You want at least 2/3 Mana Feed, and Improved Health Funnel is pretty much a requirement (IMO, at least). I've been Demonology since 60, and used the Felguard all the way through the Outlands. He's even somewhat useful in non-Heroic 5-mans, as a short-term off-tank, and he's darn useful on trash.
From what I've seen and been told, the Imp is most useful in groups for its Blood Pact stamina buff and as a Dark Pact mana battery. The imp, while cool, tends to run out of mana and becomes useless pretty quick.
My current demonology build is
thus.
The point in Demonic Aegis can go pretty much anywhere; I put it there because you need a point somewhere in the first 5 tiers to get 25 points for Master Demonologist, and Demonic Aegis is the least useless (other options are Master Conjurer, Improved Enslave, and Improved Succubus, VW, and Imp). The build leaves you 20 points to go wherever you want 'em. I personally put them in Affliction, as I like instant Corruption and Nightfall.