Absolutely this. Eberron makes good use of psionics by tying it to alien dream entities and their meat-puppets. It feels like part of the world. Dark Sun makes good use of psionics as both apocalyptic mutant powers and a substitute for failing magic. Greyhawk and Forgotten Realms kind of have it because they are core rules, but don't really do anything with it aside from a few monsters. In a gritty medieval setting you really don't want it all. D&D already has too much magic and superpowers. In a modernish magictech setting it should be a good fit, but you still need to resolve how magic and psionic practitioners view each other. In Ravenloft, the Pathfinder approach is a better fit. etc.