> Can any one tell me why this happns?...How does the
> interpreter know that daemons r no more
> valuable?....
It doesn't "know" anything about how "valuable" any thread is. The threading facility was just designed such that there are two categories of thread, and a thread of one category is enough by itself to keep the VM running, while a thread of the other category (daemon) is not.
In other words, a deamon thread is, by definition, one that you use when you don't want that thread alone to be enough to keep the VM running.