I did 5 sub-I rotations for psych, 2 of which were auditions. I made some very strong connections during one of my auditions and had multiple current residents and attendings all write e-mails and speak to the PD directly about me. Had I not done this/had this experience, idk how my cycle would have gone, but it's possible that it would have turned out very poorly...
Not coming across as committed and having bad interview skills can hurt a lot. As someone else said, board scores aren't necessarily the "rate-limiting-step" in psych like it is in some other fields. That doesn't mean it's not moving in that direction more. One of the PDs on this forum even said he no longer interviews DOs without USMLE scores anymore because he has so many applicants and it's an easy way to cut the list of who to interview down a bit. Predicting the future in this field is like trying to predict the stock market, but at the very least there seems to be a trend over the past few years which doesn't seem to be slowing down (at least not in the near future).
I think the bolded is the most common thing. I know plenty of people who thought psych was still a super easy field to enter and after the match this year have changed their tune. I don't think psych is that competitive yet, but I think there's a big difference between how competitive psych actually is vs. how competitive many people
think it is, which can lead to some poorer application strategies and overestimating your own ability to match.
Also, I know your first part was sarcastic, but in 2016, CTO showed that of FMG and IMG applicants to psych, they had 32% and 29% match rates respectively, while the overall match rate for FMG/IMG candidates was around 50% for each, so psych is certainly a less non-US grad friendly field than it has historically been. This is likely due to both an increased number of US applicants and an increase in applicants to the field as a whole.
I would guess it's both pretty heavily for DOs. I know one person in my class who applied to psych initially and ended up ranking any ACGME psych positions because they got more AOA interviews later in the season in their competitive sub-specialty than they were expecting to. Idk why it's so low for IMG/FMGs, maybe visa/citizenship issues? It'll be good to see CTO this year though, as I'd like a lot more details about this cycle.
You could also look at the Program Director Survey if you want actual evidence that Step scores are less important than communication skills and evals.
Here's the link, psych starts on page 121:
http://www.nrmp.org/wp-content/uploads/2016/09/NRMP-2016-Program-Director-Survey.pdf
You'll notice that Step 1 scores are considered one of the least important factors for both being offered an interview and actually matching, while interactions with faculty/staff, interpersonal skills, LORs, and professionalism all are rated as being significantly more important. It's not wrong to point out that psych emphasizes different characteristics in an applicant than some of the more competitive fields which use Step 1 scores as key to the kingdom (or at least the interview) or to note trends which have been occurring in the field over the past 5-6 years. I also don't think anyone is saying psych is more competitive than mid-tier fields or even that it is one, but it does seem to be heading that way if you actually look at the trends over the past 4-5 match cycles.