Yes, the (appropriate) goal of an acute inpatient psych hospitalization is to get the person stabilized and out of the hospital, into some level of community-based treatment, as soon as possible. It's not
just about managed care/reimbursement issues, it's also about the principle of treating people in the
least restrictive setting that will meet their needs (a good thing!

)
In general, residential programs and outpatient clinics & programs are less focused on "quickie" stabilization and discharge, and can take more time to work in depth with people.
I hear what you're saying about "just drugging people" (I am an old-timer and was working psych back in the "good ol' days" when people stayed on inpatient units for weeks and months at a time and we had the luxury of doing all sorts of intensive therapeutic interventions with them), but it's not so sad if you think in terms of acute inpatient hospitalization being just one individual piece of the larger continuum of psych treatment options and settings, and one that is (typically)
intended to be a very brief stay for the purpose of quick crisis stabilization, with the person then moved on as soon as possible into another level of treatment.