while I understand what you are saying, and probably would rule as such in my game as well, please point out the part people are reading incorrectly
SRD:
Dissolving Touch
Psychometabolism [Acid]
Level: Psychic warrior 2
Display: Visual
Manifesting Time: 1 standard action
Range: Touch
Target: Creature or object touched
Duration: Instantaneous
Saving Throw: None
Power Resistance: No
Power Points: 3
Your touch, claw, or bite is corrosive, and sizzling moisture visibly oozes from your natural weapon or hand. You deal 4d6 points of acid damage to any creature or object you touch with your successful melee touch attack. Acid you secrete denatures 1 round after use, losing all efficacy and ability to deal damage. You are immune to your own acid.
Augment: For every 2 additional power points you spend, this power’s damage increases by 1d6 points.
Chill touch is mostly the same, except it can last over multiple rounds with many attacks, so it lists it as 1 touch/level.
The above power says that the acid denatures 1 round after use. This would seem to give a full round with which to use it.
As this would generally amount to around 3 attacks with it at the most (and it would mean being unable to use it in the round it is manifested, so hurting that round) it doesnt sound horribly overwhelming.
Interesting, possibly too strong, but it does seem to read that way.