People had insights that there was such a thing as an atom hundreds of years before fictional Christ came on the scene, too. This doesn't mean they split the atom, or even had rudimentary understanding of atomic structure.
Freud had a famous quote that prefigures "dianetics". However, he abandoned the approach: not because it wasn't getting great results, but because his financial supporters didn't like his "hysterical" patients recollection of having been raped or otherwise abused as children later in life (as often the "hysterics" were their own daughters).
"What left the symptom behind was not always a single experience. On the contrary, the result was usually brought about by the convergence of several traumas, and often by the repetition of a great number of similar ones. Thus it was necessary to reproduce the whole chain of pathogenic memories in chronological order, or rather in reversed order, that latest ones first and the earliest ones last; and it was quite impossible to jump over the later traumas in order to get back more quickly to the first, which was often the most potent one." - S. Freud, uncertain date (1890s)
You say Freud abandoned this approach, yet it's my understanding that the idea that repressed traumatic experiences result in pathologies which may be treated by means of accessing blocked memories using techniques such as free association and hypnosis has always been an essential feature of psychoanalytic therapy. This doesn't sound to me like a naive, inchoate understanding of the phenomenon. Also, if someone has actually managed to "split the atom" in the realm of psychiatric therapy, I haven't heard about it. However, if anyone is likely to pull it off, I suspectit will be these folks: http://www.nimh.nih.gov/news/scienc...-of-the-brains-mind-boggling-complexity.shtml