I think that was Simon’s point: that you can’t solve a problem by isolating it and ignoring it. Hamsterdam made the rest of Colvin’s district more peaceful but turned a blind eye to the drug dealers/users. The reverend pointed this out, and Colvin brought in needle exchange programs and social workers, but it was too little too late. Like Carver’s “tax” to help out the laid off lookout kids and to bring in athletic equipment to let the kids work off steam, the whole program, while well-intentioned, was completely ad hoc. The Dutch and Danish programs have been/are more successful, because they weren’t done in secret and they were thought through.
The school program, on the other hand, was a boutique solution that required lots of resources the system didn’t have. That said, it was better thought out than Hamsterdam: it pulled the disruptive kids from classes so the regular classes went more smoothly, and it dealt with those kids in a constructive manner. By the end of the program everyone was better off, then the district officials cut them off at the knees and threw the kids back into the same situations they’d been in before. And Colvin rescued Namond, reinforcing the idea that, with individual attention and effort, at least some of these kids can be rescued from the downward spiral The System has them locked in to.
That’s where Simon’s message lies. He believes that all of these problems are surmountable, with great effort and cooperation. But he also knows that the inertia of the culture probable won’t allow for the kinds of changes that are needed.
All of the institutions portrayed through the 5 seasons are populated with people who recognize the rot at the roots, but they are also populated by people who don’t want to rock the boat lest it tip over on them, or they are too self-interested to actually attempt to solve problems that they recognize (everyone who discovered Hamsterdam recognized the logic, and held off on criticizing it until they recognized the personal political advantage of attacking it).