>>51082398In gen 1, Psychic type was as overpowered as it was because the developers screwed up implementing Bug and Ghost type into the game. The only Bug type moves were Beedrill's Twineedle and Jolteon's Pin Missile, which were absolutely pathetic moves. And because of a glitch Psychic types were actually immune to Ghost types instead of weak to them. It also didn't help that Beedrill and Gengar were part Poison type as well. So Psychic basically had no weaknesses at all in gen 1.
However, in future generations Bug was made a lot more powerful. With moves like U-Turn, Signal Beam, X-Scissor, Bug Bite, Megahorn, etc. And Ghost was fixed to be super effective against Psychic types instead of having no affect on them. Furthermore, Dark and Steel were added, which further nerfed Psychic type as a whole. Having a weakness to common moves like Knock Off doesn't help. As it stands right now, there's really no good reason to use Psychic types. People often complain about how Grass is such a weak typing, but at least it has useful resistances to Ground, Water, and Electric. Psychic's resistances aren't that great and it isn't even that good offensively either. Psychic just isn't a good type in its current state.