Great idea to set up a court that sends people to the loonie bin instead of prison. We also need a death-sentence court, a probation court, and a community services court.
Myself, if I ever get arrested, I'm going to ask that my case be assigned to "a month's vacation at a luxury resort in Bermuda" court.
God forbid that we might have courts where there's a jury to determine the facts of the case, and the judge is competent to pass judgment.
(It's easy to determine if someone is a loon or not. If they plead "innocent but mentally ill", they're out of their gourds. Even Ted "Unabomber" Kaczynski was sane enough to realize that prisoners have rights, and the patients in loonie bins do not.)