We do indeed have Lovecraftian horrors. Specifically, we have the spawn of a universe born from Buffy and Angel having sex in the sky that proceeded to travel forward in time to open a fabric in reality...

...I don't mind Season 8 as much as most do, I think it actually had some really cool occurences, but there was definitely nonsense.

But, yes. Otherwordly beings so terrifying and horrible that Giles was actually able to pull together an army of demons from their own world to stop them.