On the contrary, many old-timer traditional literature-focused e.g. Object Relational psychology schools are having a heyday having their insights shown to align with reality using all the bleeding-edge genetics and AI-powered data going around.
Every time this comes up, it feels like a fake controversy manufactured by people who are tech-savy enough to know how to find scientific papers on Google Scholar, but, curiously, have yet to discover the library, or the conference or... the college lecture hall. You know, places where people discuss literature?
Yes, psychology is just a literature, and... I'm not sure anyone seriously disagrees? Perhaps this is just the natural conclusion to having a field swamped by well-meaning but misplaced industry funds, laypeople can't cut through the bullshit on Google Scholar or find a librarian.