I've always heard rumors the Psychedelic movement never really went away, but went into hiding or morphed into a combination progressive/experimental/indie/shoegaze. Cranium Pie makes no apologies - they are your diehard psych/experimental band from Bath England who have been around for a few years (at least since 2006 when they first appeared on MySpace). Not too much is known about them, aside from their location and that they are as yet unsigned to a label. It hasn't stopped them. They have a couple of ep's and a live album (which you can download for free at their site), recorded at Glastonbury this past month) and a bunch of video's.
This track, Drying In The Sun, is one of their earlier efforts (at least according to their site) and I am assuming it comes from 2006, although there's no confirmation of that and I could probably be wrong.
But in any event, this gives you a taste of what they are about and, from what I am discovering, there are literally hundreds of bands out there doing Psychedelia proud.