I agree with you. People in the West want to feel and look good and have an obsession with "healing themselves", hence meditation and psychedelics are sold as ways to achieve that. However, if you study the origins of meditation and psychedelics, they have nothing to do with feeling good! These practices were closely guarded by a few select practitioners or shamans and normal people would not engage in them at all. However, in the case of meditation some teachers shared some of their learnings to householders, albeit in a very different way. They certainly did not advise laymen to go on intense meditation retreats to get in touch with their childhood trauma and heal themselves!

For those who are willing to really commit their lives to it, meditation - or to be more precise the spiritual path that leads to it and merges with it - can absolutely cure many neurotic issues. This happens when people stop pretending to feel great and honestly accept that they feel bad, anxious or whatever. By learning to befriend your "bad" emotions slowly and whilst nourishing "good" emotions (through e.g. loving kindness or compassion meditation), you start to slowly unravel some of your milder neurotic issues. But it should be communicated very clearly that you can't sprinkle a bit of mindfulness over your messed up life and expect to be enlightened...