Satanism isn't a form of Paganism. But there was a whole discussion on that elsewhere.
But yes, people who think we worship the devil are ignorant. Where we differ greatly is that I believe the cure to ignorance is information, not spite. It is absolutely our responsibility to educate on what our various religious believe and offer. You can't just expect people to know everything before confronting you.
I don't think that Paganism is for sheep. We have Devils of course, like Loki, and while we don't exactly "worship" them in the same manner we do our divine deities, we still revere them as holding positive aspects and bringing balance to nature. Christianity has a tendency to tarnish the deities of others religions, making them into the composite character of biblical Satan, and also into various Demons. I think the argument would be whether or not non Indo-European deities like Set or Ea are Pagan. If they are, then modern Satan is a demonization of various Pagan gods, so Satanism is in a sense Paganism. I think that Ea is a probably a composite of Set and Dyeus. Of course, they are all different names for the same basic force, regardless of any direct cultural link.
Still, no, we do not worship the Christian Devil.