Loren is a mod for Oblivion which adds a whole new world called "Loren".
Will you get anything form them, like more damage to undead or are they just goals to go for?
In the description I mention something about achievement rewards.These rewards, perhaps will grand you some special fame for killing undead and NPCs will give you special quests.
Now as for the damage part you mentioned I wouldn't add something like a passive holy damage effect on the player.I will probably add something like granting the player access to holy spells or artifacts or god blessing!
I have plenty of ideas in mind and I will try to implement them since I decided to work on Loren again.
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Loren will also feature Achievements.There will be a big variety of Achievements and some of them may reward the player with something.
The image is just an example.