I'm part of an ongoing escalation league at my local store and the games for this weekend are set at 750 points.

As it stands, this is the list I was planning on using:
The Masque

Bloodletters x5 (Chaos Icon)
Bloodletters x5
Daemonettes x5 (Chaos Icon, Instrument of Chaos)
Daemonettes x5
Pink Horrors x7 (The Changling and Bolt of Tzeentch)

Soul Grinder (with Phelgm)

Wave one will be be the Bloodletters, the Horrors, and the Soul Grinder.

Most of the people I play with tend to play very shooty armies (hence splitting the Bloodletters and Daemonettes into small groups, dividing fire). Ideally wave one goes in with the Horrors and the Soul Grinder out in the open to draw fire (as well as return it), while the BL deploy out of LoS but closer to the enemy (hopefully in place for a second or third turn assault). The Nettes will be deployed to support any ongoing assaults and the Masque in such a manner as to bring back anyone thats trying to maintain ranged combat.

Any thoughts on my makeup and strategy?

I'm guessing that this was made out of the Spearhead? :D

The only issue I can see is your Squad sizes because most armies with decent close shooting ability (Space Marines, Tau, Eldar) will make mincemeat of you during the turn after you've dropped down. I think you would be better with slightly larger squads for the Bloodletters and Nettes.

The Spearhead? What ever gave you that silly notion? *cough*

Lump the four, five Daemon squads into two 10 Daemon squads? My fear with that was losing an entire squad due to a bad Deep Strike roll. Though I suppose that was more of an issue with my 500pt list, nothing there to make up for bad rolls.

I'll give it a try and see how it works out. Thanks!