Ginger, I agree that juvie has better outcomes than programs, and I agree that the lion's share of these parents are putting the kid in for trivial reasons.
I blame the War On Drugs for a lot of this. The sane thing to do if your kid is smoking pot is to tell them to cut it out, try to supervise them better, talk to them and try to straighten out whatever problems are making them think they need chemical assistance to have a good time.
Unfortunately, in this day and age if you do that, you could lose your house--RICO confiscation.
I suppose a parent could protect themselves from that by putting the kid up in an apartment or trailer or something so the kid and his pot is not in the parents house, but it's stupid as hell for them to have to do that.
I think there are things your kid can do that mean you have to call the cops on them. If your kid is violently attacking people, torturing animals, destroying large dollar values of property, or stealing in the grand larceny range, you have to call in the cops.
If your kid is psychotic and threatening violence, or depressed and actively suicidal, you pretty much have to commit the kid to a mental hospital, get him stabilized on medication, then bring him back home. Or, if he can't be stabilized, he may have to stay there.
The problem isn't the few Right people being incarcerated, the problem is the many Wrong people being incarcerated.
There need to be safeguards---especially to check for the possibility that the parents are the problem and that moving the kid to a relative's home or a foster home could fix the "problem".