>these folks would be much better off moving to another small-ish, lower-cost-of-living, but non-failing town in BC. Prince George, Vernon, Mission, etc.

That's an interesting idea, but the smaller BC towns also have their own homeless issues. I don't think their municipal gov would be open to the province providing relocation resources to these people.

Also East Hastings draws vulnerable in, and has an iron clad grasp on them. These people might not want to move due to friends/nearby support non-profit/substances.

Finally, some of them have drug addictions after they move to Vancouver. There should be resources to help them exit first.