Not sure what's meant by psychfolk and I don't think anyone else is. I imagine it's the inheritor of the soft folk jazz rock of bands like Pentangle. There's a sense in which the iconoclasts who found deviousness in polyphony and seduction in statuary still find moral corruption in unmotivated repetition and musical tropes.
Unfortunately the visionary impulse is too readily branded as dungeons and dragons and there's little chance of escaping that cliche with roundheads like Richard Dawkins or the musical and artistic establishment Thou Shalt'ing from the inside of the Groucho club.