This thought crossed my mind earlier and completely agree.
Clearly I don't think options 1 and 3 are moral, but I would say that the only reasonable option we have right now is incarceration. We need to overhaul our concentration on glaring mental health issues in this country in every aspect.
I'll agree at least partially. As for murderers, rapists, child molesters etc it would be more difficult to argue not putting these people in prison.
But I know we can't keep shoving in repeat drug offenders or people with other mental incapacities. Treatment and rehabilitation over locking someone in a cage for drug offenses. That probably won't be a popular view but it's one I think is in the right direction.