When it comes to the devil changed, people fear what they represent...It is just an ideological belief that turns it into an analogy for racism.
But with somone like Hiro, they fear what he can actually do. Its a bit like seeing somone always with a gun. His artificial arm looks menacing enough to crush a little fairy girl, and he has only one normal human eye. It's a very menacing form to have IMO. But when you get used to it, it's fine. Not all tfs can be beautiful sadly... Though most are.
Hiro is both turning over a new leaf and trying to impress max I think.