I agree up until the last part. Collective forced housing (en masse), involuntary institutionalization, or enslavement, all give similar effects and they are negative. I highly recommend a visit to the Glore Psychiatric Museum in St Jo, Missouri, if you want to see what those asylums were actually like. It’s out of a horror film. What you’re requesting is a living nightmare for the very people who can’t advocate well for themselves.
I think a better solution would be assisted living apartments, giving the person in question the most autonomy possible. Social workers should be required to have body cams. You might like learning more about bioethics when it comes to determining autonomy and consent with medical/neurological conditions - a complicated topic.