I run a drop base from an aftermarket chrome air cleaner on a Holley and a RPM intake with no clearance issues on my 69 GTS, I don't run a choke but I see no reason if would interfere. I think mine is an old Moroso but I have heard the Ford Motorsports 13 inch drop base air cleaner base will work as well with a factory magnum lid. Of course the Ford part will slow the car down but at least it wont rub. I run a Holley on a 440 in the 68 RT Coronet with no clearance issues under a stock hood with the correct magnum lid and base so you might get lucky depending on your car, it doesn't run a choke either, one more great thing about living in Florida.

Not sure of a height difference between a Holley and Demon but I believe they are the same, heat spacers under the Holleys will give me issues. As strange as it sounds I use marshmallow on top of the air cleaner to check clearance and lower the hood slowly and check for contact, lowering it a little more each time.