Its not. The impact letters, lack of un-monitored communication, nutrition, hygene, isolation, coersion, and other ethnical issues are already present and have already been addressed. Same for saying they fix ADD, ADHD... blah blah blah... and other things you yourself called red flags.
On your second point, I do agree. I just find it bizarre, fishy, and hardly an example of any kind of psychotherapy I've ever seen, and I'm no stranger to it either.