I actually was suggesting the elemental resist or physical resist penalty as on top of the health penalty. Probably for initial testing I'll just cut down the AP bonus by 50% and leave the penalties as is. Maybe I'll tack on -1 to bodybuilding because as Chrest said, being more vulnerable to cc is more dangerous (or about the same) as not having enough health. Maybe cutting down the AP bonus to 25% and reducing the penalty to 25% or so would be a lot easier to balance, but I do want a little extremity of the talent. It's cool and special when a talent drastically changes your character instead of just having some minor change.
Personally I think the whole demon trade thing is problematic. Trading 1 Talent for 2 attributes is pretty fair, and two points in speed certainly isn't going to match even a 25% bonus to AP, but to me it's more of the 10 ability points for 1 talent that's a problem. When you can go from 0 to 4 points in a weapon skill, that makes that 10% damage of Anaconda look like a complete joke. I'd drop the ability trade to 5 points while buffing the weaker talents that still pale in comparison to that.