Dr Dog isn't true psychedelic in my opinion, they have a neo-psychedelic style. The pureness of acid rock, not many bands are doing it anymore.

But I completely agree with 40oz in regards that there's so much good, psychedelic-like, 60s based music coming out these days:

Delta Spirit - Ode To Sunshine

War On Drugs - Wagonwheel Blues

Two amazing albums that are complete throwbacks of the 60s, but pushing musical limits, Delta Spirit with their perfect blend of northern and southern rock, War on Drugs pushing the limits towards ambient rock while sounding bob dylanesque. In my opinion, those are the two best albums of 2008.