I was a psych major, and my other major was English, so the pre-med thing really confused some people! And they do assume you want to be a psychiatrist, which isn't true in my case either. But I liked the major, because it was very science-oriented, but you didn't have to do a bunch of labs, and the people were very accepting. There would be students raising their hands in class and discussing personal experiences with mental illness or things like that that would never come up in a science class.
You learn a lot about yourself and others, and have fun at the same time. I think it is a great major for pre-meds because it is a broad subject. I had to take a research methods class, a statistics class, and several seminars all within one major. Plus we discussed the scientific method a lot, and wrote formal research papers, as well as conducted experiments. People say it's an easy major, or that it's not a real science, but I found it challenging, and more interesting than the supposedly "natural sciences."