Asylums still exist. What this person wants to bring back is the ability to lock people up and keep people locked up there with little recourse. A typical case from this time[1]: > [Cramer] frankly discusses the “regimented, often hopeless conditions of state mental hospitals”, talks about a hospital in Alabama where “care was worse than simply inadequate: one psychiatrist for 5000 patients; astonishingly low funding…
It is possible to keep mentally ill in walled communities and those communities not resemble the above. There are activities which are known to help some of these people, such as gardening (plants are cheap, forgiving, rewarding, and have no real profit motive).
There are large numbers of mentally ill people who are given a bottle of pills and just released to fend for themselves. This became common after the development of certain medications and the government felt it was a lot cheaper than institutionalizing them.