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Also, I have read some versions stating that devas and asuras are not classified based upon races but classified based upon their behaviour. Why did asuras had to be perceived as evil people. I mean no one is truly good or truly bad practically. So how did they classify them as either devas or asuras?
If they are classified based on their creation, why are asuras evil? Why are devas divine? What is their primary objective?
Devas and humans used to reside together on Earth at some point in time.
See:
In ancient times gods and men used to live together in this world. Then the gods went to heaven by performing rites, while men were left behind. Those among them who perform rites in the same manner get to dwell in that world together with the gods and Brahman.
For this purpose Manu proclaimed this rite bearing the name ‘Ancestral Offering’; he did that also for the prosperity of the people. In this rite the ancestors are the deity to whom the offering is made, while the Brahmins stand in the place of the offertorial fire.
Dharmasutras of Apasthambha 2.16.1-3
This is a partial answer as Asuras are not covered. Also I don't know which time was it when the Devas and the human beings used to dwell together in this world.
