3.5 system is great, and I'm loving what I'm seeing from Dreamscarred. That's my preference.
The complains about psionics in terms of fluff seem petty at best. Vancian is cribbed from a series of science fiction books, and the general fluff behind Vancian involves using complex formulas and vague references to experimentation and the scientific method to learn new spells.
Psionics is about altering the world with your mind and willpower, but it's declared as being not-fantasy?
Fact is, power points, or magic points, or whatever you want to call it, is more familiar as being fantasy magic then any other system for anyone who isn't intimately used to Vancian. 95% of all fluff-based complaints about psionics come from the fact that it's called "psionics;" if it had any other name, those complaints would be gone.
As for races, I never really got into the psionic races other then Xeph, but it'll be interesting to see how those go since there was a nudge towards removing LA and HD from playable races. As it stands, they definately need a step up - they were somewhat weaker then bog standard humans in 3.5, and they're very much weaker against Pathfinder races.