One could also question the idea that if a real city had "homeless" that were happy because of "prostitution" and other kinds of degenerated bribes like that that it wouldn't "function" in a way. I am not so optimistic, and perhaps some (obviously not all, not even the majority, but perhaps a tiny few) results of a given simulation like this, weird as it may seem, might not be "unrealistic" just because it deviates so much from our own realities.
In our real world, you'd have extreme outside pressure to get out of that kind of hellhole and let the paradigm deviate towards what the rest of the world is doing.