I have suggested something similar before. That is, the creation of very rural ex-convict “trustee” towns that are intentionally low tech.
The primary purpose would be two fold: to provide a place for retirement of ex-con trustees while significantly reducing the potential for recidivism; and second, as a major cost savings to the public.
The town would be run by a manager and a small staff and there would be a nurse on staff. Wooden buildings would act as group homes and small businesses. Deliveries of food and manufactured goods like clothing and some tools from the government and charities would be made to the staff building.
The entire town would be fenced. Not to keep in the trustees, but to keep out outsiders as well as wild animals.
Part of the town area would be for agriculture and animal husbandry. Scrip would be used as currency.
I don’t see any “downside” to a real-life test of your concept. If one such “town” works, then we can start a PROGRAM.
I guess that, for some, the “downside” would be that there few opportunities for graft if only one such town is built.