3E Psionics is psionics in name and theme only.
While 2E was not a good set of rules from a mechanical point of view, it covered what makes psionics psionical a lot better. The new version strikes me as magic mixed with comic-style psychic powers masquerading behind a whitewash of heavier psionic ideas.
However, the 3E system, for what it is, is both cool and very easy to use. I do think it has sucked the life and coolness from psionic combat, and I would either simplify that even more, or replace the system. I think Bruce Cordell is, was, or will be working on an alternate to psionic combat that would capture the mindscape style of battle better.