I also have mixed feelings, though I'm sure Augusten Burroughs had good counsel and did what was best.
Here's a link to a Jan 2007 article in Vanity Fair:
http://www.vanityfair.com/fame/features/2007/01/burroughs200701?currentPage=1
I think it's useful to debate the issue of how much "embellishing" and use of "composite characters" is acceptable in memoir. It's the old "slippery slope" problem--and a tricky one.
But one thing is very clear: the bare-bones facts about this psychiatrist, Dr. Turcotte, are very disturbing. Note that he lost his license to practice because of violating professional boundaries with patients. (For details, you can read this article.) His behavior was clearly unethical and illegal. It reflects poorly on everyone who works in mental health. (I'm a psychologist.)
Even if some argue that Burroughs embellished certain aspects of his story for dramatic effect, the simple facts are damning enough. I hope the "settlement" with the family doesn't serve to minimize how damaging the behavior of this psychiatrist was to many people.
Okay, I'll get off the soapbox now!
Susan