The point about closing institutions because of abuse is not wrong. The solution isn't to close them and push the mentally ill out on the street, it's fix the institutions!
^ 100% agree, some mentally ill people just need to be in an institution, where they can either get the care and treatment they need - and hopefully be cured and become a functional member of society - or at least where the amount of harm they are able to cause to themselves (and society) can be minimised.