Great interpretation, both of you.
My two bits is that I have read Nova Express and I knew it had influenced David at the time I read it, so I was looking for certain things that he refers to.
Basically, there are many references to 'police' power-- some sort of authoritative anti-creative influence on the characters in the book. The 'gang' of characters are very strange outsiders that ultimately try to destroy this authority, using drugs, big events and bombs to get their point across.
I personally think David got the idea of the term 'diamond dogs' from that Nova Express and NOT 1984.
Because William Burroughs is so scattered in his writings, I am interpreting the book as I saw it. The sci-fi influence of a world-gone-wrong with corruption and egotism is very apparent in Nova Express.
Perhaps this is where David got his ideas for different personas. There are several in the book with the different, bizarre characters--including The Sailor.
"It's dangerous to confuse children with angels."