http://en.wikipedia.org/wiki/Psychoanalytic_theory#Critics_o...
Specifically note that his theory, although debunked, still lives on in philosophy and literature analysis. This "stickiness", that people refuse to give up the theory when proven wrong is additionally a bad sign.
Recovered memory therapy is a recent failure http://en.wikipedia.org/wiki/Recovered-memory_therapy
http://en.wikipedia.org/wiki/Behaviorism
In the 1950's, behaviorism fell out of favor (primarily because it lacked the explanatory power for some things, especially language).
Freud's major contribution to psychology was that we actually have a dynamic subconscious that profoundly affects how we live our lives. This aspect of his theory has become so ingrained in our culture that it's hard to imagine the world before Freud. Also, that aspect of his theory has held up over the years.
Also, he got a number of things correct: many of his coping mechanisms have strong empirical support, for instance.
Freud was wrong in detail, but his overarching approach changed psychology for the better.
[0] Yes, I know this "history" is a vast oversimplification.
The psychologists I've worked with design experiments to attempt to determine fundamental mental capabilities in terms of perception, memory, spatial reasoning, etc. and how this can be applied to design safe and effective user interfaces, in particular for safety critical systems like aircraft.
Sure, the models they develop are likely just useful approximations, but it seems that models at the neuron level would be too unwieldy for these sorts of questions anyway.