It seems to me that psionics can be designed and flavored in a manner that is palatable to any number of desires, from Sword & Sorcery to Eastern Mysticism to High Fantasy to Vulcan Mind Melds. Heck, I could squint and see a lot of the 'magic' in The Lord of the Rings as psionic if I really tried. As such, I too heartily approve of the nomenclature change to Mystic and more fantasy sounding names. My problem with psionics in the past is that the traditional Power (or Psi, or whatever) Point management sub-game is not something that appeals to me, despite the flexibility promised by the system. The Mystics seems to be backing away from this slightly, but also seems to be trying to shove too many concept under the same umbrella.
As to the Magic or Not? question, this Edition has less of problem with that distinction than previous ones I think, but it would still be an issue. Dispel Magic is much less of the go to nuke it was in 3.x (partly because layered buffs are no more, and partly because Counterspell has shouldered it aside a bit). Some care would have to be given to how the two interact, but it could be done by reasonable DM & players. Magic Resistance could be applied to most psionic effects, creatures with resistance to charm and the like should be given due consideration with telepathic intrusion effects. As a player, I would be a little peeved if my Mind Blank didn't also protect from psychic intrusions and psionic location. So Really, it's only in places where mind affecting/protecting magic (enchantment, illusion, abjuration) intersect with traditional psionic powers that it could get ugly.
As to the Magic or Not? question, this Edition has less of problem with that distinction than previous ones I think, but it would still be an issue. Dispel Magic is much less of the go to nuke it was in 3.x (partly because layered buffs are no more, and partly because Counterspell has shouldered it aside a bit). Some care would have to be given to how the two interact, but it could be done by reasonable DM & players. Magic Resistance could be applied to most psionic effects, creatures with resistance to charm and the like should be given due consideration with telepathic intrusion effects. As a player, I would be a little peeved if my Mind Blank didn't also protect from psychic intrusions and psionic location. So Really, it's only in places where mind affecting/protecting magic (enchantment, illusion, abjuration) intersect with traditional psionic powers that it could get ugly.
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