Indeed, though I'm a little more optimistic this time around. I think Leary and the rest assumed LSD was more-or-less guaranteed to produce profound spiritual insights in anyone who took it. Therefore, the primary problem was distribution: once LSD was available to the general public, society was guaranteed to "wake up."
Obviously, this was mistaken. Many people did take acid, have direct experiences of divine revelation, and go on to live happier, more fulfilled lives because of it. But many also took it primarily as a deliriant; they took it for fun, saw some neat visual hallucinations, maybe offended some people, maybe got wrapped up in a paranoid delusion. Or, even if they did "wake up," their excited babbling could appear very disturbing to observers, who often had no frame of reference for what the drug-user was going through. I'm sure it scared the hell out of a lot of them.
Clearly, psychedelics aren't a panacea for society's problems. But what we're seeing now is a return to the more reserved approach of administrating these drugs in a controlled setting, and primarily for the purpose of psychotherapy. I think psychedelics have a bright future as long as we avoid trying to "change the world" and focus on just helping one person at a time. I don't fault Leary for his optimism, but ultimately I wonder if he did more harm than good.