Yeah, Starr looked at this kid's material for all of two seconds before bluntly stating he's textbook schizophrenic. Pretty much what you just said.
I'm afraid though that Mental Issues will probably not see an improvement for two reasons:
1 - The modern hands-off approach is rooted in the dismantling of most formal institutions for the insane. This was done with the noble intent of ending a model that was basically life imprisonment for people regarded as sub-human (with conditions of incarceration to match). As a result, it is very difficult to institutionalize someone without their consent (not that I'm saying this is inappropriate). In many places, the laws would have to be significantly changed to once again allow a useful level of involuntary commitment, but I doubt this will happen due to the bogeyman of such laws being abused to lock up undesirables (be it by family or the state).
2 - By dismantling the old structure of asylums etc., Governments essentially eliminated an entire secondary prison system. On paper, it looks like this was an incredible cost savings, so governments are loath to spend that money again. Of course, thirty years of dumping the mentally ill on the regular prison system, their families, or the community at large have proved the costs were simply transferred elsewhere (and increased), but we're not yet at the point where governments really "get it" and will spend money to save money.