You DO realize such weapons would violate various international laws and make the US the prime threat to world peace (heh, as if it wasn't yet), right?
Chemicals that cause mental disorders (not homosexuality, but temporary insanity -- they don't suddenly "become" gay as far as I understand the concept, they just hump everything in sight) -- or simply psychological traumas (as result of temporary disorders) -- or permanent physical disorders (light sensitivity, etc) and can only be used on areas and not individual targets are no different from the traditional weapons of mass destruction.
Finding methods of tracing terrorists is an okay concept, but creating chemical weapons that can not be used discriminately is about as unethical as it gets, lethal or not.
Most weapons for reducing enemy morale had the opposite effect. Carpet bombing civilian areas has always turned the civilians against those who ordered the bombings, public executions have always increased the hate against the executioners, and so on.
You might demoralize a few people, but the majority will just get their beliefs strengthened and if the "demoralizing" actions affected civilians, you might even get MORE enemies (but hey, if the civilians are against you, you can just call them a new threat and justify wiping them out)