NWN2 handled Greater Sanctuary's sister spells in 3.5e, those spells being Ethereal Jaunt and Etherealness, a lot better than Greater Sanctuary was handled in NWN1. Here, it's basically a rich man's invisibility. Basically, you're supposed to be a ghost more or less when on the Ethereal Plane (Near Ethereal here, as Misted_Horror pointed out).
Did you know that force spells like Isaac's and Magic Missile are supposed to affect those who are ethereal? Betcha didn't! So if you want to implement some sort of change where ethereal folks can't get hit, I think it would be nice to have them able to receive normal damage or even a damage vulnerability from magical damage.