Considering the numerous times that Seth talks about psy time it is clear that it's an important connection to the inner senses. How close it is to meditation I'm not sure. Rick Stack indicated that mediation and psy time were quite different but didn't elaborate. Your description of mediation does indeed sound quite different from psy time which it is not so much about uncovering beliefs which are connected to our physical life but is more about connecting to our inner senses. That said I can certainly see the value in using meditation as another tool to uncover beliefs and insight to mental habits.
Seth Speaks, Session 522, near the end of session, p56. In this session Seth is talking about the entity and the soul, physical life as camouflage, and using your inner senses. He doesn't use the words psychological time which is probably why you didn't recognize that he was talking about it. I wouldn't have either had I not taken a Seth course by Rick Stack, Here is the quote:
"The inner senses will allow you to perceive the reality that is independent of physical form. I will ask you all to momentarily forsake your roles therefore, and to try this simple exercise.
Now, pretend that you are on a lighted stage, the stage being the room in which you now sit. Close your eyes and pretend that the lights have gone out, the setting has disappeared and you are alone.
Everything is dark. Be quiet. Imagine as vividly as you can the existence of inner senses. For now pretend that they correspond to your physical ones. Clear from your mind all thoughts and worries. Be receptive. Very gently listen, not to physical sounds but to sounds that come through the inner senses.
Images may begin to appear. Accept them as sights quite as valid as those you see physically. Pretend that there is an inner world, and that it will be revealed to you as you learn to perceive it with these inner senses.
Pretend that you have been blind to this world all your life, and are now slowly gaining sight within it. Do not judge the whole inner world by the disjointed images that you may at first perceive, or by the sounds that you may at first hear, for you will still be using your inner senses quite imperfectly.
Do this simple exercise for a few moments before sleep or in the resting state. It may also be done even in the midst of an ordinary task that does not take all of your attention.
You will simply be learning to focus in a new dimension of awareness, taking quick snapshots, as it were, in a strange environment. Remember that you will only be perceiving snatches. Simply accept them, but do not attempt to make any overall judgments or interpretations at this stage.
Ten minutes a day to begin with is quite sufficient."
If you check out these quotes on the search engine here http://search.sethtalks.com/q/psychological+time/ you'll see an incredible number of references to psy time. Out of about 479 hits for psychological and time there are approximately 80 for psychological time. It did give me some insight but I'd sure like to hear other people's experiences with it. I'm currently doing it nearly every day, sometimes taking the weekend off. Have you tried it Dave or just the meditation?