The problem was in the past, these just empowered families to do things like lobotomize their relatives for being embarrassments, like Rosemary Kennedy or Frances Farmer, to list two famous examples, although lots of not-so-famous people got treated even worse. Just because it's a family claiming they need a family member locked up doesn't mean their motivations are good.
I do think we should find a middle ground between how things are now and how they were, but it's hard to know exactly where to strike the balance, and there's no political will to do anything at all currently.