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Seems right. But they didn't get very far with the two feuding; it fizzled for some reason. By WrestleMania, they were jobbing to two Japanese dudes who the crowd literally didn't recognize.
Yeah, reading up on LOD vs. Demolition for the WM reviews I saw that LOD and Ultimate Warrior battled Demolition on a Saturday Night Main Event and then LOD and Demolition were on opposite sides at Survivor series.
While some of this was just crappy booking by Vince, I think some of it had to do with Bill Eadle of Demolition starting to breakdown pretty bad. I think he was already in his 40's during the best of their run.