As with many areas of halacha and hashkafa, there are 2 major schools of thought – the rationalists (Rambam, RaSaG etc…) and the mystics (Chassidishe Rebbes and Ari type kabbalists). It seems that the major machlokes between R’ Yonason Eyebshitz and the R’ Yakov Emden may also relate to the above issue. I certainly could not make an assertive claim that one approach is more valid than the however…
However, I agree with the premise of the original question that many people (even within the ‘mystical’ approach) have gone way too far and I think it’s simply because SEGULOS ARE EASY. Think about it, if you are having a serious family issue, one rav tells you to improve upon your behavior and actually change your middos vs. another rav who says just say a certain kfitel tehillim and wear a red string – which would you choose???