I've seen deinstitutionalisation be presented with two opposite connotations, one that reveals us to be a cold-hearted and negligent society that thinks its a waste of tax-payers dollars to house the mentally ill. Or a society that wants to avoid the horrors of institutionalizing the mentally ill in state-run facilities.
You may be interested in this excellent answer about deinstitutionalisation provided by u/amp1212 in this thread asking a similar question: