Am I crazy or are many spells set to do Piercing damage?

Could someone experienced with Nearinfinity confirm or disprove this?

I've got Spiritual Hammer and who knows what else with their effects listing their damage as "Piercing"?

Here's an effect for Spiritual Hammer:

Type: Melee (1)
Type flags: ( None )
Ability location: Spell (2)
Icon: SP074.BAM
Target: Living actor (1)
# targets: 0
Range (feet): 480
Minimum level: 16
Casting speed: 1
Bonus to hit: 0
Dice size: 6
# dice thrown: 0
Damage bonus: 0
Damage type: Piercing (1)
# effects: 0
First effect index: 1
# charges: 1
When drained: Item vanishes (1)
Projectile: Spiritual Hammer (SPPR204.PRO) - 260

Am I reading this right? Is this really what governs the spells damage type?

Because if that's so, then manyy spells I've looked at out there are set to do Piercing.

But this looks like it can't be right, because it says that the dice size is 6, and Spiritual Hammer is supposed to be doing 4-10 per 3 levels of the caster. Although this would explain why it's barely doing anything in game, and that then would mean there's som seeeeeerious bugfixing needed on the spell front.