Prompted by a question from
inyron on demon metaphysics, I've decided to share my own personal theory on the matter.
I think that Jossverse vampires do have blood circulation. Vamps bleed, they have sex, they cry and heal. Everything seems functional, but it works on a different system.
Angel speaks but doesn't 'have breath'. Darla drinks blood but cannot nourish her child. Therefore, I propose that vampire systems are incompatible with human systems. When the issue is forced, the demon consumes the humanity that it comes in contact with (which makes Connor's 'baby safety shield' a necessity -- it was protecting him from his mother's infectious blood).
Whether this is because of how the first vampire was created or whether it's demon thing, I am undecided.
( spoilers for 'Shells' )