"The Night Terror's stats will scale with your Mindpower, as will the damage bonus to sleeping targets." from the description of the talent.
The code has the line
"local stats = 10 + self:combatTalentMindDamage(t, 10, 50)"
but the actual definition of the terror has
"stats = { str=15, dex=15, wil=15, con=15, cun=15},"
and nothing else in the talent references the stats at all.
Ideally in my opinion it should scale with the stats as it says, but the bug could also be fixed by changing the description.
(I have no reason to think the damage bonus to sleeping targets is bugged.)
)...also I know this is presumptuous, but have you considered swapping Inner Demons and Night Terror's positions in the tree? Inner Demons is infamously powerful, after all.
)