I think the paranoia might strongly depend on the history of the society (and we're creating it in this thread :) ). It might take just a single psychic-killing spree to amp the paranoia level "to 11".
The question is how will people around someone "whipping out gun" react, if basically everyone has a gun drawn already. I know the family/friends will probably try to calm such a person down, but any public outburst of anger might be suicide.