racedo,
I think the 'institutionalised' bit applies also to young men who have served in relatively low grade positions in,say, the infantry, for a relatively short time in the Army but who had a tremendous amount of support from NCOs and junior officers during that time.
In 'civvy' street many of them are completely lost and this is reflected, sadly, in both the prison system and those agencies providing support to those who have fallen by the wayside eg Salvation Army, church groups , charities etc.
I've dealt with them in the Criminal Justice system and they are not well equipped to deal with post service life.
(I don't know the solution I'm afraid)