RE: Two Questions...
#1 Target Panic is hard to explain (for me anyhow), but a miserable experience. I'd heard about it for years, but just couldn't understand it until I had a round with it. For some folks, it causes you to be unable to come to anchor when you are shooting at a particular spot--you might be able to anchor with no problem at all if you aren't shooting at anything, but can't do it on an actual shot--release before you ever get there. Some can't focus on a spot, some can't release the string, etc. For me, I couldn't do anything right. It really hurt my confidence and ability to focus, and I think I had a very mild case (lasted about 6 months). I know of one fellow that was an excellent shot, but I reckon he's quit alltogether due to TP. Hopefully you will never find out just what it feels l ike.
#2 At least long enough to avoid cutting yourself with a broadhead. If the extra length doesn't bother you, I wouldn't worry about it. It sounds like you will be overspined with the 125 grain points if you cut them off (assuming you are a right handed shooter, they are showing overspined with the 100 grained points).
Chad