Assuming Rosenhan's study was fictional, what was his intent? Was it a lie intentionally designed to discredit, destroy, or reform these institutions?
I'm more worried about a diagnosis -- even a correct one -- that marks you forever and limits your freedom in overt and subtle ways.
I'm sure that prevents a lot of people from seeking treatment, unfortunately.
How do you know if it's pretty rare? I'm unaware of anyway for people to collect data on it. I'm doubtful anyone can get justice when it happens, unless insanely rich and or large media following while being wrongly forcibly incarnated.
I'm not aware of many limitations besides some people getting their driver's license taken away. I think most people don't seek treatment because they don't really believe in the psych illnesses. Also the baggage that comes with relying on medication with the short or long term side effects.