...Basic rule of thumb for mindreading is: If it costs a LOT to mindread, then they probably give you something good for doing so. Maybe you'll trigger a hidden treasure or something...
You may want to go here:
http://www.larian.com/forums/ubbthreads.php?ubb=showflat&Main=26771&Number=432702#Post432702 and read my post from a few days back. It's the 5th one from the bottom.
I pushed Mindreading to L-3 on my very first character but never have put in more than 1 point into it on any of the other characters.
Let me clarify: I never said mindreading unlocks new things if you level it up. I'm referring to when you mindread certain people extra items appear elsewhere that would not be there if you never read that person's mind.
I still prefer pumping mindread up to 15 in flames of vengeance, though. Amassing 100-200k+ EXP debt isn't fun.