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Codex and FAQ doesn't state how he generate malefic powers. FAQ states all Daemons has access to it but how many can he generate??? I assume 4 for each head?

http://www.dakkadakka.com/dakkaforum/posts/list/30/598358.page

The Codex: Chaos Daemons FAQ makes it abundantly clear.

http://www.blacklibrary.com/Downloads/Product/PDF/Warhammer-40k/7th-faq/Chaos_Daemons_v1.2_Oct14.pdf

In 6th edition a LoC was arguably better, especially in smaller games.

Changes to smash, Psychic powers, FMC swooping/glinding and vector strikes in 7th edition however served to massively nerf them.

(Though I disagree with the OP, and think sticking the grimoire on a LoC is a massive waste).

In 7th edition Fateweaver can still fulfill his roll of providing armywide buffs, and is more durable now that bringing him down is more difficult.
The LoC on the other hand has lost its purpose, and cannot fulfill any role with any great efficiency.

Ok so fate weaver knows the primaris powers of each powers? If not then he can't really summon.

He generates one power from each of the tables listed for each head. You can always swap out for the primaris, but you dont have to.

 astro_nomicon wrote:
He generates one power from each of the tables listed for each head. You can always swap out for the primaris, but you dont have to.

Yep! Depending on what you're up against you probably want to keep Cursed Earth and/or Incursion and then default to primaris for everything else rolled in maelific.