It is the case that we have difficulty placing public toilets because of the risks their abuse will pose to unsuspecting users. I don't think it does anybody any good to pretend that these aren't real problems, or that we can moralize past them.
I think, at least in most major metros, we're past the point of it being a live issue whether to fund services to transition homeless people off the streets. Residents will fund those services simply because the alternatives are so disruptive. With that in mind, I feel like any response to this problem that centers on "well we should fund more services" is basically stalling.