I'm currently in a non-psych social science PhD program at a decent but not stellar R1 state school. My BA was from a very highly ranked R1 state school in psych. I'm currently considering a return to psych (probably at a "reputable," university-based PsyD program), and noticed that this thread had recently been revived, so I thought I'd chime in to add to 1) the discussion about stigma, and 2) complicate the discussion about funding a little bit.
1) Stigma: As an undergraduate, I originally intended to go the clinical PhD route, but it quickly became clear to me that, at least at my (prestigious, ahem!) department at that time a) people intending to do clinical work were not welcome to apply, and b) the clinical subfield and faculty were themselves stigmatized by many non-clinical research psychologists (applied research being valued less than basic research). I began the honors program, taught by I believe it was the vice chair of the department at the time, who was also serving in a prestigious position at the APA, and within the first 5 minutes of class he laid it out: "If you want to become some sort of shrink or pseudoshrink, do NOT apply to our clinical program." (These words were burned into my brain. He also made a snide remark about teaching right off the bat, how one had to tolerate it in order to do research--disheartening, since at the time, he was teaching us). This message was repeated in numerous ways from both faculty and then-grad students: a desire to do clinical work should be concealed until after the hooding ceremony, you had to fight to receive your clinical training, clinical skills could simply be "picked up" later (as those who stated this, condescendingly, believed that little actual "skill" is involved). The only grad student I met (a wonderful TA--very bright) who didn't exhibit these attitudes quit after the MA, intending to do clinical work. I'm sure that this isn't true of all PhD programs, but it was certainly true of the most "fully funded" (I'll get to that in a minute), reputable one within a manageable geographic distance for me. The school I am at now (again, in another social science field, but I am nonetheless acquainted with the clin psych department) is also R1 but less prestigious, and though I don't think these issues are that extreme, folks I've talked to in clinical say that there is still a stigma against intending to actually do clinical work--you are being trained as academics, pure and simple. This program would rank as much more of a "balanced" program, and yet the stigma remains, and folks who want to practice feel the sting.
2) Funding. It's more complicated than whether or not a particular program is (representing itself as) "funded." What KIND of funding is provided and what kind of variation is there amongst a given cohort in what kind of funding is provided? If there are "haves" and "have-nots" within a given cohort, which are you likely to be? There is a big difference between the kind and extent of work you may be doing with an RAship and with a TAship (working as a teaching assistant). Don't underestimate the trade-off (stipend and/or tuition remission for TA labor). If instead of receiving a fellowship or RAship you receive a TAship, your undergrad students will demand constant attention and greatly reduce the amount of time you have to spend on your own intellectual and professional development. As I understand it, the psych program at my current school is represented as funded (and has been represented on this forum as funded), but from what I've been told, the psych folks at my school receive very different funding packages, and those lucky enough to even get TAships can find themselves working their asses off. Instead of working a single 50% appointment (1 class, supposed to be limited to 20 hours a week), they may find themselves trying to cobble together two 25% appointments, which is vastly more work for the same money (two classes full of students to grade and manage). I TA most quarters and, unless I'm working for my advisor, I go WAY over my TA hours most weeks (usually 30-35+ hours, just on TA-related duties: meetings, office hours, lecture, prep, section, reading, grading, email). Most TAs don't feel empowered to tell profs they assign too much work--knowing they'll just be told to work more efficiently. Going to the union is the nuclear option no one wants to use, so we just suck it up, but it slows our progress. There's also a psychological toll to thinking of yourself as a scholar and being treated like...well, dog poop by a bunch of teenagers who are more interested in grade grubbing than learning. I've been blatantly disrespected on a quarterly basis, enduring constant plagiarism (the most recent case took over 12 hours of documentation, emails, and meetings, and admin told me that I still might need to attend a hearing), one student left my discussion section without a word and came back 15 minutes later giggly and obviously high, another student threw her final exam in my face...you get the picture.
So what am I driving at with this very, very long post?
1) If you are considering applying and are concerned about the (alleged?) stigma of the PsyD, remember that amongst some, clinical work itself and clinical PhDs are also stigmatized. In fact, I daresay that the broader field of psych is stigmatized amongst many in academia. Many of the "hard scientists" see the discipline as too unscientific (with the exception of neuro), many contemporary social scientists and virtually all folks in the humanities regard psychology as too "positivistic." Yes, program/degree stigma can have concrete consequences with regards to placements and finances, and it's not inconsequential by any means, but some applicants here have expressed concerns about the respect afforded various degrees, and I'm trying to point out that there are many hierarchies, especially within academia. The top of one may be the bottom of another.
2) Yes, PsyDs pay for their training, but there are also costs to accepting certain types of funding associated with the "funded" PhD programs. These can sidetrack your own progress.
3) Try to talk to people in your prospective programs to sort out the programs' propaganda ("we are a balanced program," "we provide funding opportunities to all our students") from the perspectives of people on the ground. If the "funding opportunities" are TAships rather than fellowships or RAships, you are taking on a lot of work.
4) Lastly, for those of you who are inclined towards the PsyD, but are considering the PhD only because you want to leave open your options for an academic path open: the academic bubble has burst. Even doing all the "right" things (good school, lots of pubs and conferences, good letters) aren't a surefire recipe for success: there are now literally hundreds of applicants for many jobs (not just tenure track, but VAP and post-docs too). My friend has two books and a list of journal articles and book chapters as long as your arm and three years on the market, applying both nationally and internationally, have yielded no offers. Moreover, people with MAs may be more competitive (than PhDs) for adjunct lecturer positions because they can be paid less. Not that adjuncting pays much to begin with. It's really sad, but the academic job market is simply flooded.