Have you got a link on Wolfensberger? Not sure I follow your point about de-institutionalisation. Is the argument in favour of it? I understand that people in care who were de-institutionalised have oftentimes ended up in a worse situation, eg: mentally ill people becoming homeless when Reagan closed down the asylums in the US. But yes, the institutions aren't there to truly serve the needs of the apparent 'service users', rather to manage social problems in a way that causes least damage to market fundamentalism (or can even benefit it if they can get the service to run on a business model).
cheers,
I
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