What do the pendants do? are they just something for collection, like the Triforce, or do they have actual meaning, like a bracelet or the boots??
Pendants??
the amulets reveal hidden enemies
The "Amulet" ( 😛 ) actually does just that, but I'll elaborate a bit. If you go to the Screen flags area in ZQuest, you'll see a flag "Invisible enemies" .. Check that, and on that screen, instead of fully formed enemies, you'll see only clear and misplaced pixels. The enemy itself doesn't show, but certain pixels, I have no idea which, will "displace" the terrain underneath it.
The Amulet 2 does the same thing, but it's not implemented yet. It will allow you to see "Level 2" invisible enemies... which.. also have yet to be implemented.