It's sort of a convention of the genre...Reefer Madness proudly proclaimed "What Really Happens!" on the poster. And they did it WITHOUT irony. I do understand emotional buttons (and my views on mental health stigma are probably not dissimilar to your own) and how that can negate that sort of thing though.
Anyway, I didn't like this one as much as some of the others ("Pit of Despair" is still a favorite of mine), but it had moments. Too many shots of blank walls made it seem less exploitation and more home video. Some time spent working on sets could make it a little better and still keep the "realistic" thing you're going for. Maybe some sort of image filters to make it look older, to give it that Mondo vibe? Dunno. You can't go too over the top with the acting on this sort of thing, and I like the narration, though it could be more so. Maybe narrating about depravity while showing something that is very clearly not?