The speaker feels trapped by an audience that only wants their pain. The "Encore" of the title turns a life into a stage show, and the speaker has become a performer whose suffering is the main act. The "angels" and "white wings" suggest a cleaner, healthier story that nobody wanted to watch. Fans, "the kids," loved the speaker's lowest moments and said they "relate," but when the speaker tries to recover, that sympathy turns to hate.
So the "demons" get the encore, whether the speaker likes it or not. The line about pausing life like TV is the most honest moment: a wish for control that the speaker doesn't have.
The mood is bitter, tired, and darkly funny. The short, flat ending, "better than silence?", leaves the speaker uncertain. The applause sounds "distorted," yet the fear of being ignored seems to keep the speaker partly hooked on it.