James Blish, in his novel "Black Easter" (originally serialized in "If" magazine in 1967 under the title "Faust Aleph-Null"), offers an elegant and clever explanation: That succubi (presenting-as-female demons) "couple" with human males and retain their semen. Then, after transforming themselves into incubi (presenting-as-male demons), use it to impregnate (willing) human females.
Regards,
There is still one unaccounted for piece of the puzzle. The offspring of the union of the sons of God and the daughters of men were the Nephilim—giants.