So regarding the psychological model; it is 100% correct. It does not, however, address the issue of the nature of ALL entities.
If you are working with entities from most currents the fact of the matter is that most are constructs of humanity in some way. They are indeed energetic archetypes tailored to the individual, while at the same time having an autonomy of it’s own as a result of humanity in general. If you need further proof of this I suggest you check out a recent post by @Baal : Probably my last post here - Something I've discovered
Baal is spot on in his assessment, IMO, and before anyone gets triggered just keep reading.
There is a part of the equation missing for some people, and it is not their fault. There is also very little most of us will ever be able to do about on whim OR will. I am talking about the individual experience, or what some call unverifiable gnostic experiences.
I am going to use two general examples: poltergeist activity and random “sightings”.
Regarding poltergeist activity: It’s one of those things where seeing is believing. Until it is something that has actually happened in front of you I would withhold a final opinion on the topic. If you address it as a scienctist you have to realize how much is energy is involved in simply making a lego block move one inch. If you think that is a product of the mind or a result of some collective energetic subconscious than your goal should probably not be to become a living god, it should be to become a living psychic, because that shit is pretty crazy to see.
Then there are encounters with entities that do not interact with you. There is no anthropomorphic or symbolic relevance to the manifestation. In some instances it may not have even been called. What is that? Again, seeing is believing.
Side note: Many people seem to think practicing banishing techniques is in bad form. The “encounter” scenario above is why I personally disagree. It is not cool to be caught with your pants down, and not all banishing must use RHP principles. You might never actually need to use them, though. Most people go there entire life without such an experience. My own experience in such things is still questionable in my own mind.
My point is that there are things in our world that we cannot explain at this point, so to say that it is humanity that causes all things we consider magickal is to have an extremely inflated opinion of our species at worse and a highly optimistic opinion at best. The magician that will keep an open mind and at least acknowledge that we cannot YET explain everything can carry the science of magick to greatness, because that magician will always keep asking questions, just like a true scientist should.