"Athleticism: For matters of physical feats, such as jumping, running, swimming, climbing, carrying things, or maneuvering through rough terrain, as well as moving large objects, the Athleticism stat is key. This is a general measure of the physical strength of a human, which is rarely comparable to the strength of a Digimon."

"Psychology: A character’s Psychology rating is a reflection on their mental health. This stat is used to resist effects that fool the senses, and represents how stable the character’s perception of reality might be. Psychology ratings may take temporary penalties after disturbing events, and, with player and GM approval, permanent reductions resulting in said character being prone to moderate to radical behavioral or personality change."

Nothing here implies any of this. In fact, the way athleticism is worded sounds exactly like a 1-star rating would just mean you're not as good at doing the stuff. Not that it implies anything that extreme.

Also this line: "For each point a character has in a stat, they may roll one die when that stat may come into contest."

How does that make sense for a medically feeble person at a 1-star rank athleticism? If they're that bad off they shouldn't be able to do anything at all.

As for psychology, it actually implies to me the exact opposite of what you claim. It determines "how stable the character's perception of reality might be" which implies to me that they would be more likely to be less confused by sudden illogical changes. It says to me that they should be able to perceive the changes and adjust their thinking accordingly, because they have such a stable grasp on reality.