This is a complicated issue. I've seen this happen in practice. As long as the process remains conservative and respectful of the patient, it results in better outcomes for the patient and a more peaceful society.
The cases where I have seen this happen: schizophrenia, drug-induced psychosis, acute mania, dementia.
Patients come out far better in an institutionalized setting, as opposed to being on the streets and walking aimlessly in dangerous traffic.