My campaign has always used psionics, so I have to vote
1) Yes, we do use psionics...
BUT...
We don't like the rules as written. The problem my players have (ok, my one player that has had a psionic character for years) is the way that psionics just seems like magic in a different set of clothes. Back in 2E, a psionic character was even more limited in his powers, true, but that character could get abilities that were absolutely unique to psionics. He could even give his friends minor psionic powers, via the Psychic Surgery power. A psionicist had truly unique tools to use against monsters or villains, without having the breadth of the wizard or being a lynchpin spellcaster like the cleric.
Now, the psionics rules are treated just like another kind of magic, to the point of being dispellable by basic wizard spells. The powers are just spells with different names, and the way those powers are learned or chosen is almost exactly like a sorceror's spell selection. Yes, a psion has the capacity to mix and match, gaining any power that he can handle for his level, but what character really gives up the chance to learn a more powerful spell or power for a lower level one? The only good things about the XPH in regards to psionics are Power Points (or PSPs, if you prefer the older term) and Augmentation, which is the best mechanic I've seen WotC implement in any magic system yet.
Oh, and don't get me started on the generic flavor of the 'psionic attack modes'. They pretty much suck. Ability damage is flavorless, uninspiring, and bland. The old rules had effects that made the power names MEAN something. Example: Ego Whip forced the victim to take penalties on all of his attack rolls, saving throws, and skill checks, because he had lost confidence in himself and his abilities. That's much more in line with traditional psionics than taking 1d4 points of damage to an ability. (OK, Mind Stab doing Intelligence damage is kind of appropriate, I'll admit.) Strength damage, though? Dexterity damage? These don't make sense for powers that are part of the Telepathy discipline; Psychometabolic, maybe, but not Telepathy.
Now, don't think that I hate psionics. I don't, as is evidenced by the fact that I actually use them in my games and have always had at least one player who chooses a psionic character. It's just that I think they've lost their unique flavor in 3.5. That's why I tend to houserule them, particularly the psionic combat modes. I feel it gives something back to the role-playing side of the game, rather than just making psionics another kind of magic.
