I look to the hundreds of people who've succeeded through Sponsors help to determine it's value to society. 95% of felons are released to find the punishment didn't stop there.
Shelter and supervision don't guarantee success but it's a step in the right direction. 
I agree some criminals game everything. It's breaking that cycle that is the most frustrating. Onsite supervision and the threat of re-incarceration gets their attention though. Bugsy and Shifty (Pancho and Lefty? :) characters are not welcome and are warned of an arrest should they return.  Have you heard of any incidents like this at a Sponsors? I haven't. Women and children flying signs is dangerous. Not sure where you are going with that.