I've always loved psionics - even ran a dedicated Psionics campaign in the 3.5 era. Here are my takes:
1e: Yeah, the space magic feel is correct. It's also why Mind Flayers were so feared. Psionics wan't balanced - and frankly it was OP, because "Psionics Was Different". Spell Resistance, Dispel Magic, etc. didn't work against psionics.
2e: Frankly, I've always felt that this was the most flavorful of the set. The feel is closer to the Deryni novels than space magic. The rules explicitly recommend using the "psionics is magic" option, but don't assume the option by default. The powers, though flavorful, are incredibly uneven. Some are just completely overpowered, others are underpowered to the extreme. Oh, and power point calculation is a little completx (IWC averages, anyone?)
3.0: This is distinct from 3.5. The best summation is "don't". No really. 3.0 psionics is the purest, best (worst?) example of MAD (multiple attribute dependency) I've seen. It's pretty much what coined the term. As a result, the classes are mostly unplayable.
3.5: Pretty much psionics done right, IMO. It loses a lot of the flavor from 2.e, but Psionic Combat is mostly fixed, and unless you've got actual Telepaths in the party, probably unused. The psionic classes are well implemented - the Kinecticist is pretty close to the only kind of Blaster Mage that reliably works in 3.5, IMO. The soulknife class is a little underpowered. I recommend highly Dreamscarred Press's Soulknife fixes. Dreamscarred produced so really go expansions for 3.5 Psionics, which I had good experiences with, but the authors were frequent contributors to the CharOpt boards, and it shows.
4e+ : Haven't played with any Psionics in these editions.