There are a few other genre's of fantasy that do work well with psi. Very commonly, and publicly in teh RPG community now, is the 'girly lit' fantasy of Blue Rose.


However: I have a strong issue with using Genre's to define stuff in any but the loosest terms. Tolkien, for example, wasn't writing 'trad fantasy', he was spinning a yarn about epic, mythic heroes. Other than perhaps a nod to 'fantasy' as a broad catagory (thus magic, elves and powerful artifacts), I doubt he had a list of tropes and 'do' and 'do not' elements. I suspect most of the better authors write/wrote without worrying about what genre they were supposed to be working in.

I've had this argument before in regards to the line between cyberpunk and transhuman literature, I'm willing to butt heads with you on various 'genres' of fantasy...