I don't think the pronunciation issue is too bad - given that the word 'psyche' is pronounced the same way, at least in my accent, and Greek mythology names being on the rise. Teasing might be a problem, but it's not like kids don't tease kids with perfectly normal names, either.
For middles, I'd go with something more familiar in case the kid wants to go by something else, but still with a nice meaning/asociation. For example:
Grace,
Matilda, or
Olivia.
For siblings, I'm thinking either another mythology name, a name with similar sounds, or a Shakespearean name. For boys:
Zephyr,
Sinclair, or
Orlando. For girls:
Hero,
Ariadne, or
Celia. I think
Sinclair,
Psyche, and
Hero sound nicely together.