What if not only PTSD but all psychological phenomena were, by their very nature, rooted in the physical chemistry of the brain? How bizarre would that be?
But when people talk about the psychological/physiological dichotomy, they're talking about causes. A psychological cause for an ailment is one that is brought about by thinking — by the brain operating normally without any external interference. A physiological cause is one that requires an external agent, like concussive force applied to the brain, or asphyxiation.
Psychiatric illnesses are an interesting edge case because they usually deal with the balance of various chemicals in the brain that are supposed to be there. That balance can be influenced both by external factors (like taking a psychoactive drug, such as an antidepressant SSRI) and by just thinking. It's not as well understood how thinking influences brain chemistry, but meditation, for instance, certainly does.