It seems from the article that for the people in the wet house in question there is no marginal point of overcoming their addiction. They've decided that given a choice between continued sufferring on the street and an early death, or getting clean in a treatment program, they prefer continued alcoholism and death.
Take a look at this 5-minute clip of supper time at a wet house. They're not getting clean, regardless of whether they're in a wet house or not. They've chosen to die slowly, and they'll do that whether they're homeless or not.
"Wet houses"-- subsidized housing for alcoholics (they need to get most of their own money for alcohol, but their other expenses are covered) might actually be a good idea. It's cheaper than trying to get them to stop drinking, arguably kinder than trying to get people to take on a very hard task that they aren't interested in, and leads to less collateral damage than having alcoholics couch-surfing or living on the street.
Utilitarians, what do you think?