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XCOM: Enemy Within introduced several new toys for the player to use, including the ability to genetically modify your soldiers. Most of the new gene mods are straightforward but there are still a few that leave out a detail or two.

Neural Damping gives +20 will when defending from psi attacks and gives immunity to panic and Mind Control.

Neural Feedback damages anything that attempts a psi attack and forces all of that enemy's psi attacks to go on cooldown.

Does Feedback also provide immunity to Mind Control? If a Sectoid Commander or Ethereal hits my soldier with Mind Control and lives, does the control still take place? Does Feedback also damage an Ethereal using it's Psi Lance?

I feel like Damping is better all around for preventing psi attacks, but does Feedback provide that same level of protection, or is it more situational and gimmicky?

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Neural Feedback provides no will bonus. It basically just hurts an enemy when they fail mind control. The practicality of this is to allow a psi-soldier with mind shield or psi-armor to kill sectoid commanders in droves. It is rather in effective against ethereals but does have a good chance to hurt them. Neural feedback does not prevent mind control or boost Will in any way. Neural feedback does not damage an ethereal using psi-lance.

Neural Dampening is for those who are going to be very susceptible to psionic attacks. This is mainly to provide a very stable case in which you will not be mind controlled. +20 will allows for a missive boost to your psionic defense. The only downside is that your soldier is stunned after a blocked mind control attempt.

They are mainly preference and one isn't particularly better than the other in my opinion. They both have very practical applications. Neither of these effect psi-lance, besides the defense provided by the Will boost with Neural Dampening.

References based on in-game descriptions and personal experience, as well as analysis of game play video relating to this topic.

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    I think Neural Feedback hurts an enemy regardless of success/failure. – walrus helmet Jan 11 '14 at 17:54

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