Modern so-called psych-folk often tends to fall into the sophistication/over-indulgence trap imo. That said, DM Stith sounds promising. The songs, while loaded to the brim with eccentric sounds, seem to possess both writing skill and a purpose. I'll definitely take time checking this out.
As to Scott Walker, I recognize a certain magic to his art, yet haven't been able to get past his most welcoming songs.
Speaking of things of our time, I think Espers are an excellent bunch. I had made a widely unnoticed reco thread about them iirc.