or focus on more serious mental conditions like add and schitzophrenia, and leave counseling to the psychologists.
I'd agree that the field has changed a great deal since Freud. However, the majority of psychoanalysts (at least on the East Coast) are psychiatrists, as are the majority of people obtaining analytic training. Some psychiatry training programs, especially in cities like New York and Boston (Cornell, Columbia, Cambridge all come to mind), heavily emphasize psychotherapy training. Psychiatrists who graduate from these programs will often manage meds and do psychotherapy with the same patients.
I agree that there is a role of psychotherapy in schizophrenia, however I'm sure that psychotherapy cannot cure this disease. An important aspect of schizophrenia is the role of psychosocial stressors as triggers and exacerbators of psychotic episodes. Psychotherapy is very important for mitigating those, in addition to addressing the social problems (family, work, housing) that are faced by people with schizophrenia. Similarly for major depression: psychotherapy has a role to play in mitigating some of the symptoms of depression, but is best when combined with medications. Some would argue that this is the reason why it is a good idea for psychiatrists to do psychotherapy - so that they can provide complete treatment for their patients. Plus, it's really quite interesting and fun, once you get into it. It can be scary to many people who go into psychiatry, though, which I think underlies much of the criticism.