Take a fictional recycling truck driving through a residential neighborhood - 10% or more of the material inside the recycling bins is going to be contaminated 'wish-cycled' material, such as barbecue laden plastic plates, nylon ropes, grease-stained pizza boxes, and soiled paper products.
Indeed they have. In Los Angeles, thousands of individual profiteers, usually pushing wheeled carts, comb through tens of thousands of large blue recycling bins in residential areas extracting the most valuable bottles and cans. They exchange these containers for cash at automated recycling centers.
(The mitigating circumstance is that the state of California subsidizes the recycling centers.)
I took it as anything but. Ethical issues aside, it's a proven, low cost solution that does scale. Why should a more coordinated solution be superior (see: planned economies)?
Label everything, put bottle deposits on everything (an idea which greenwashing groups like KAB hate and fight strongly against), and the return rates skyrocket and contamination rates plummet. It's the only proven formula.
Recycling creates jobs, which might be considered a benefit but from purely financial means, the cheapest method is to burn stuff and generate electricity sadly.