Mayo and MN are strong for different reasons. I would argue that Mayo actually does have a strong academic psychiatry dept (you got the the CD and book, I would presume, with the endless publications). They had at least 6 posters at this year's Academy of Psychosomatic Medicine meeting by Mayo attendings and trainees. Dr. Alarcon is a big cultural psychiatrist from Johns Hopkins and Emory (I think)...he often speaks at the APA and is on the board of the Carter Center (Jimmy/Rosalyn). Mrazek is a big child psych guru and spearheaded the psychogenomics campaign at Mayo. Bostwick is an awesome psychotherapy supervisor and a suicidologist. Rassmussen (sp?) is a world famous ECT specialist. Krahn is a well-published sleep medicine psychiatrist. Other strengths include transplant psychiatry, psycho-oncology, neuroimaging, rTMS. Faculty are pretty laid back despite the suits and very open to working with trainees in both the research and clinical settings (I can only speak as a med student but I did 3 research projects and 6 psych electives there). Also the Federal Prison Psych Hospital (FMC) is also in Rochester, adding forensic psych strength. Per one new faculty recruit from MGH, there is as much acute psychosis at Mayo as there was for her at MGH; I have no comparison.
MN is a stronger place to be if interested in Addiction (Hazelden treatment center), gender/sexuality issues (Human Sexuality Clinic), VA psychiatry, torture (large torture center) or cross-cultural psychiatry.
Minneapolis and St. Paul are awesome cities...explore them often regardless of the program that you choose!
Keep in mind that if you end up at one program, you can always do 4th yr electives at the other to round out your experience and draw from both strengths. Both programs consistently place their residents in fellowships in nearly all areas of psych.
I have unfortunately known people from both programs that have left during the past 5 years b/c they weren't happy. More than anything, you need to ask lots of follow-up questions to staff and residents (some may be even more candid when speaking to them one-on-one) and, in the end, pick the place that gives you the best "gut" feeling.
Hope my grammar and spelling were adequate, OPD...