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So think of the title more like this; Demon Battle: Tactics. Demon Battle (Ogre Battle: MotBQ) came first and exists in the same world, and some recurring characters from that show up (but this isn't really a sequel, no need to play that first), but the real-time wasn't super popular in Japan, so the developers made Tactics.
The story in this game has nothing to do with ogres until near the very end. Even then, you aren't fighting a war against demons, or going down into hell (although...eh sorta, Palace of the Dead was called Hellgate in the original). This is a political story, closer to Final Fantasy Tactics, or A Song of Ice and Fire (though much higher fantasy when it comes to magic than that) than to say the main line Final Fantasy games.
This series makes a lot more sense if you think of things more on an alignment chart than purely "good" vs "bad".
When referenced in this game, an "ogre" is generally flung as an insult for someone unwaveringly lawful, and implied more "lawful evil". Someone who will sacrifice anything and anyone for their ideals.