GMMichael
Guide of Modos
To its credit, sure, it can do that. What it can't do is explain why it takes three weeks of bed rest to recover your luck and plot armor, or how the characters know how badly off they are, or why anyone would spend a noble's ransom worth of gold on a potion which has no observable effect.
Isn't this topic moot by now? Even Dungeons and Dragons decided that it's pointless to make "healing" a natural thing, so you get all hit points back from a "long rest." I know I strayed from the HP-as-Meat narrative a while back, and I'm sure lots of other games have done the same.
From what I've seen, the OP just wants a dog-gone table: "Things to Say When Your PCs Take Non-Physical Damage." It's a little too situation-specific for me. I'd rather call the damage based on the exact situation. Or you could go the MMO route: "your opponent has a '13' floating above his head."
By the way, I'd spend a noble's ransom on a potion that would protect me from "future" damage, even if there were no immediately observable effect...