is it not possible to have both arcane and psionic power?
let me illustrate my point a little further by reposting this section from the PSMC2 again.
In addition to its stolen powers,
the eater of knowledge can use the following powers, once per round, at will: confusion, detect invisibility, domination, ESP, forget, hold person, levitate, and shadow walk. Eaters communicate with a natural power of telepathy; their mental voices're a discordant chorus of every sentient creature they've devoured. The eater of knowledge is itself completely immune to any mental attacks or mind-affecting powers, including illusions and charm or hold effects.
Psionics Summary
Level * Dis/Sci/Dev * Attack/Defense * Score * PSPs
10 * 3/7/14 * All/All * 16 * 210
Eaters of knowledge have the following psionic powers:
· Psyhcoportive – Sciences: probability travel. Devotions: astral projection, dimensional door.
· Psychokinesis – Sciences: telekinesis, disintegrate, project force. Devotions: animate object, control body, control wind, inertial barrier, molecular agitation, soften.
· Telepathy – Sciences: domination, mindlink, probe. Devotions: contact, ESP, inflict pain, invincible foes, invisibility, synaptic static.
the part in italics seems to be that which we think of as standard psionics. this part, i think, should be "MM mind flayer-style psionics" for the regular version, and XPH-style psionics in the alternate.
the part in bold seems to be regular old spell-like abilities. these i would keep as a separate arcane magic, and would stay the same in both versions of the monster. in the non-psionic version, it would be like having two different sets of spell-like abilities essentially, but different DMs will rule differently on how the "fake psionics" do or do not interact with what is called magic.
likewise, both of these sets of powers would be totally separate and different from any spellcasting ability it steals by eating brains. this could get ugly!
Psi-like abilities:
Probability travel, astral projection, telekinesis, project force, animate object, control wind, soften, invincible foes, invisibility, and synaptic static are not in the 3.5 powers list – perhaps they are there under a different name, or have been eliminated or replaced by something else.
psionic dimension door, psionic disintegrate, control body, inertial barrier, matter agitation, psionic dominate, mindlink, mind probe, read thoughts, and inflict pain are still there, some as the result of renaming old powers.
Also, he had all the old attack and defense modes, so we should at least keep some of them. his manifester level would be 10.