My perception of what really happened is new? Tell me!

It's quite simple. Obs: I don't know nothing about this case more than this doc. and this forum.. but read my theory first and underestimate me later - if is the case.

Terry Hobbs due to all his documented reason's of violent behavior and hate, strike that specific children. Which died. To cover up his trace he kills the others two. That's why he don't have an alibi and the DNA thing fits. Also explains the positive testimony by the polygraph guy's history: "The secret of the family".

Hobbs left the place.

Damien and his friends are walking through that area. They find the corpses. Instead calling the cops, they play games with them with sticks and maybe with knives, rape and so on. This explains the confessions and the knowledge of the details of the scene by the friends. As well as the lack of an alibi. Note: I don't know the US law but I think (and I'm trying to think as them) that they'll be convicted as murders in the same way or very close to that for having done what they did. That's why Damien denies the presence in the crime scene. On a more hypothetical way we can imagine one of the children still alive and the "fatality" done by Damien.

For me, the identity of Hobbs combines with an unstable man that can turn up in a killer. And the identity of Damien combines with a quizzical that can be very dark. And this works - in my limited point of view - in the case.