Rationality and the Reflective Mind

The media is increasingly bombarding us with reports of advances in neuroscience which claim all sorts of amazing feats, like allowing us to read our thoughts and intentions. It sounds like neurobabble. Most of these reports though are either based on bad science, reach false conclusion, or are based on conceptual misunderstanding of how our psychology works. To be fair, much of this is manufactured by the popular media but, unfortunately, some of it comes from the neuroscience community itself. So, what information can we really get from fMRIs? As with the misunderstanding of what genes are (like whether there is a God or a conservative gene), are there really parts of the brain dedicated to categories of thoughts like some of these reports claim? And, perhaps more importantly, what are the ethical implications of this neurobabble, should we arrest people who we can tell, based on this research, will be committing a crime?