Elle, there was a “Blitz Spirit” in England during World War II but much of the data from the period is suspicious. The government downplayed reports of mental illness for propaganda purposes. Only one large-scale study was commissioned on the psychiatric and psychological effects of bombing in areas frequently targeted by the Germans. The researchers found extensive trauma symptoms including uncontrollable shaking, chronic headaches and dizziness, persistent crying and loss of bladder control as well as soiling. Peptic ulcers became more common as did alcohol-related problems.
The decrease in hospital admissions probably isn’t a useful measurement as it could reflect a scarcity of resources available to treat trauma during the war. Among the people who seemed to cope well with the effects of the Blitz, they often developed PTSD symptoms later in their lives.
Finding community is one of the best treatments for mental illness but that’s not likely to offset the threat of death from the skies.