I do agree with your assessment. But when they realize that the windfall is monthly, there has to be a percentage of folk who will do something positive with the money.
There will be some who back of on other forms of income because of this. These are the ones who should be restricted from this type of activity.
It might not be the case with this program in Stockton, but other programs have actually lauded the "Basic Income" as "relieving recipients from the necessity of economic activity," "freeing them from drudgery," and "allowing them to pursue more-satisfying - e.g., creative and expressive - forms of activity."
So you have to realize that your hopes (however modest) for this program are diametrically opposed to the goals of the program founders.
Regards,