Yes, I agree with that, but the original question posed wasn't one about place. The original question was a What question not a WHERE question. The shift from what to where in the parenthetical part is the reason it is translated as a parenthetical remark. It is off-topic in a discussion τί ποτ᾿ ἐστὶ θεός. The fact that pagans are presented here as thinking of divinity as a What and not a Who is itself noteworthy.
Diog. 8:1 Τίς γὰρ ὅλως ἀνθρώπων ἠπίστατο τί ποτ᾿ ἐστὶ θεός, πρὶν αὐτὸν ἐλθεῖν; 2 ἢ τοὺς κενοὺς καὶ ληρώδεις ἐκείνων λόγους ἀποδέχῃ τῶν ἀξιοπίστων φιλοσόφων; ὧν οἱ μέν τινες πῦρ ἔφασαν εἶναι τὸν θεόν (οὗ μέλλουσι χωρήσειν αὐτοί, τοῦτο καλοῦσι θεόν) ...
This source I cited in my original post is a mystery to me. It just appeared in a search for the text I was working on. I am having problems providing a link to it. If I paste this into Safari address box it gets me to the right place: https://early_christian_el_en.enacademic.com/4984/%CF%87%CF%89%CF%81%CE%AD%CF%89