The bathrooms become too expensive to maintain because they are being used by people who need to be institutionalized. When this is suggested the Civil Liberties people get into an uproar. You could build one wall and keep people who suffer from psychosis inside of it, or you can put them on the street and watch as everyone else finds ways to build walls of their own.
The institutions of the past were so bad that it is more human to let those people fend for themselves than put them in one. Yes some people freeze to death now but that is better than before.
if you can reform the system fine but I don't have conidence. Human nature doesn't deal well with the needed power imbalance.