I've always been a huge fan of psychedelic and acid rock from the 60's, so I'm really happy to see the resurgence of this type of music in more recent times. Some of the best albums to come out the past few years have come from bands like Deerhunter and Animal Collective who borrow heavily from the likes of Revolver-era Beatles and psych classic The United States of America. The genre hasn't really changed that much with the new crop of bands popping up... They're basically doing the same thing they did in the 60's, but that still means there's a much greater willingness to experiment with structure and sound than you see elsewhere.
One band I've taken a great liking to is Tame Impala from Perth, Australia. I remember being hooked as soon as I heard the opening track to Innerspeaker called It Is Not Meant To Be. The part that really stands out to me, and makes the song shine, is how the aural texture (for lack of a better term...) of the song shifts so perfectly to match the lyrics. The instrumentation is pretty standard, but it seems very thought out how the different instruments interact and carry each other through the different parts of the song. To me it's a perfect psych pearl, and my favorite Tame Impala song.