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.
Quite on the contrary. For a recent example of misapplication on the thousands see [1]. The idea that the deliberate misapplication of these "laws" doesn't exist or is minimal in the current year is completely false.
[1] https://www.tampabay.com/news/education/2019/12/10/floridas-...