The telepath arc didn't work very well but it does end and there is plenty of good stuff like G'Kar and Londo. The telepath issues largely disappear early in the series when their underground railroad through B5 gets discovered. We saw some of the bad side with Bester but that left a lot to infer rather than be direct story points for the episodes he was in (Selective breeding, totalitarian control, actual thought policing, etc.) There are also hints in comments from Talia and Lyta but they are few, not usually central to a plot and easily forgotten.
With all the Shadow War and Clark finished so abruptly for logistical reasons the telepaths pop in very suddenly with a large arc that needed more seeding to see why folks on B5 are behaving as they do toward the ragamuffins. A lot of that might have been carried by Ivanova who had a history of criticism on telepath issues and was a latent telepath herself.
Also, Byron is such an obvious Jim Jones cult leader who really isn't offering anything different from Psicorp, he just wants his own version. It makes him and his people seem narcissistic and unsympathetic. In the early seasons, we got to see the discrimination telepaths faced, but that really got forgotten with Lyta's involvement with the Shadow War and the Earth War. It seemed odd that the crew is so standoffish to her in season 5, especially Delenn who Lyta had no trouble going to for help back in the early days. That I put down to carrying Ivanova's possible purpose (trafficking telepaths like she was Narns, and getting involved with Byron) and Lyta having issues with her Vorlon superpowers and getting dragged into the mess.