Re: Spiritual Hit Points
I'd say that this stretches GURPS mechanics too much. Characters pay points for definite mechanics, and if you rise some of them, you penalize others for their points (i mean those who didn't invest in all those risen advanatages).
FP attack with appropriate custom Hazard and, maybe, Symptoms is pretty devastating. You can make the entire environment hazardous for sanity or soul.
Fright (and Awe and Confusion) Checks shouldn't be underestimated as well. You can substitute some checks with Will-based skills as well (if you know a lot about demons, you wouldn't be so frigtened about them).
And if it becomes a focus of your game, check Horror for Corruption mechanics and other as well.
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