Oh we definitely had diverse and vibrant characters, and that was part of what made living there fun. I also find it strange that in a page about solutions to loneliness, you reject one that, by your own admission, would introduce someone lonely to a wide variety of new people.

But if you're trying to use it as a euphemism for drug addicts, I think you'll often find that they end up homeless, despite there being SROs, because they spend their SRO rent on drugs instead, and they get evicted. If you're trying to use a euphemism for sex workers, the successful SROs usually had strict rules around the Single Resident part.

Basically it's just like hotels, in the sense that there are both seedy, run-down, crummy hotels and there are upscale hotels. That there are some crummy hotels is not an indictment of hotels in general. If you make the category legal, you will find worse and better examples, and lonely people would have their choice of establishment that would help put them back into close proximity with others.