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Seed of Corruption: Quite the interesting spell. Some facts; SoC's explosion will not damage the original target of the spell, only targets around it. SoC's explosion itself doesn't count toward towards the 1044. SoC's explosion can crit and benefits from +spell damage. This is an excellent spell, if used Cabal Alz properly.
Let me give some examples; PvE: Put SoC on a number of mobs (try loading up 3-4 targets that aren't being attacked to avoid premature explosions), and watch the numbers fly. PvP-wise, putting it on someones pet lead to an amusing effect.
SoC can do great damage in a PvP crowd, provided it goes undispelled. It can be a nice little farm tool for low level mobs as well. This spells uses are many; it's easily one of my favorites.
Fel Armor: Well, this is a really nice upgrade for warlocks in the expansion. Fel Armor will replace Demon armor 99% of the time.
Just the spell damage definitely would've been enough to give up demon armor, but the additional 20% (26% with Demonic Aegis) healing received makes the choice even easier.