I'd argue that institutionalization was simply reintroduced in many cities through 'quality of life' policing. For example, there's a reason why Manhattan in 2010 is pleasant and safe - it's because Giuliani's policies turned Rikers Island into the de facto mental institution for New York City.

Heather McDonald's 'The Jail Inferno' has some information on this, although it's not the primary focus of the article:

http://www.city-journal.org/2009/19_3_jails.html

I suspect that Rikers Island is not much better for the mentally-ill than the mental institutions of the 70s, although I haven't researched it and may be wrong. I strongly suspect that one way or another, the mentally ill will remain institutionalized in New York. The improvement in quality of life is so stark, not even the most liberal New Yorker will support relaxation of law enforcement.

"truly horrendous" was worse than dumping them out on the streets?

I'd say we've "arrived at a solution" since any attempt to limit the "personal autonomy" of the severely mentally ill gets absolutely nowhere, unless of course they end up in jail as they all to often do.

"much changed from the 70s"???

Could you be more specific? Note that I came of age in the '70s so I lived through that and subsequent periods in the evolution of "the right".

Here's one good essay to look at WRT to a thesis it touches upon WRT to three generations of activists on the right (e.g. Buckley/Rush/Drudge): http://www.americanthinker.com/2010/07/nobody_can_fire_andre...