I agree that organized religions and antisocial, ascetic concepts of enlightenment can exacerbate mental illness. I wonder, though, what the healed mind does to show that the healing "works." What's your standard for mental health versus illness?
This is a problem with radical psychology which condemns certain social norms. Most psychiatrists take their standards of health from society, committing, in effect, the fallacy of appealing to popularity. Likewise, Western doctors take their standard of health from biological functionality.
By contrast, the standard of spiritual health, or as I'd prefer to put it, existential health/authenticity is harder to come by. The radical would have to take inspiration from certain models or spiritual leaders or would have to envision an ideal of how we should be. But any mentality likely has advantages and disadvantages, so the dichotomy between health and sickness might be an oversimplification.