Indeed Dr. Jacques Vallee is one of the big minds in Ufology, but our critics to the validity of UFO sightings and close encounters MUST be applied in this case, IF we are truly objective.
IF 96 to 98 % of all UFO sightings are identified as natural phenomena , THEN it must be also true that the "gods" angels, fairies, wise beings and magicians, are mostly misidentifications of natural phenomena. A past "encounter" has not more value than a present one.
2)The psychic effects produced by these presumably existent entities are absolutely conjectural. It is possible that the UFO sighting IS the psychic effect produced by some unstable mind.
3) Dr.Vallee references to new psychic awareness produced by supposed close encounters are conjectural. There is absolutely no evidence of such thing at all.
In few words, the hypothesis of Jaques Valle is not better that the ET one. He simply gives us the old superstitions as a presumably valid rationalization of the UFO phenomenon.By the way there is a 3 hours documental debunking the theory of ancient astronauts and "spatial visions". Dr.Jaques Vallee gives us fairies and gnomes instead of little green men. Same old superstitions with different names.