In my professional fantasies villages exist within every large city like youndescribe, completely enclosed and safe, with varying degrees of freedom within their walls, for the untreatably mentally ill.
As far as freedom goes, I’d give them access 4x a year or so to a panel of experts to determine whether they are competent enough for true freedom.
If they don’t pass, giving these helpless people the care and supervision they need is better than freedom. Kinder.
once a year. Sadly some look great while in enclosure, but fail once outside of the wall.
See this now with autistics and MI in highly protective group homes...they function well, but then are kicked down to less restrictive environments or supported apartments...and they fail. and this becomes a merry go round.
The “walls” matter.