Well, Dread Witch is considered worth a level loss, it's key being it's ability to ignore fear immunity and thus terrify elementals, outsiders, undead....
You can also get a pretty much constant +3 CL.
Also, fearful empowerment can be used to hit everyone in the area of, oh, entangle, major image, hallucinatory terrain, plant growth... basically everyone in the battlefield. or the village in the last case.
Remember, that fear from different sources, stacks.
There isn't much synergy with the Pumpkin King, admittedly.... although combine with Nightmare Spinner 3 + pumpkin king 2 + dread witch = everyone within long range takes nonlethal damage...