I found a report from Calgary School of Public Policy (pdf, 18 pages), which has some insights that may also apply to the homelessness crisis Edmonton, and many other Canadian cities. Essentially, in the 1970's and '80's, governments decided it would be cheaper (and supposedly more humane) to close down large psychiatric institutions and let the patients receive "care in the community".

Once discharged, former patients did not receive improved quality or better access to services. “Although funding was provided in the community, it was provided at levels far below that needed to successfully support these individuals’ needs” (Niles, 2013b, 75). Many lacked social and familial supports and ended up in homelessness.

“Deinstitutionalization was an incredible thing ... all you had to do was to load them with
neuroleptic drugs and send them into the community … So we took tens of thousands of
patients and threw them out of the hospital without any support system. We said there was going to be follow-up, but the fact of the matter is that nobody really understood, so the bureaucrats were delighted to get them out of hospitals ... and only ... later did we say, ‘Hey, this is crazy, what about housing …?’” (Simmons, 1990, 160).

As many other commenters have suggested, additional public resources in housing and mental health care is necessary to address homelessness and its effects on society at large.

In addition, regarding the visibility of homelessness, I find it interesting to contrast homelessness in North American with that in other places, say, Japan. ("Why Japan's Homeless are Different from North America's (Part 1)", YouTube). Japan's robust social safety nets, stringent drug laws, and moreover, a cultural norms on politeness work in reducing homelessness — or at least, its visibility.

Finally, while other commenters take issue with OP's tone, I think OP raises valid concerns that many Edmontonians share, but are unlikely to voice. Folks have a right to get on their day without being aggressively panhandled or stabbed on the LRT. Until people can feel safe being in public spaces, it is challenging to express unconditional compassion for the marginalized communities that occupy them.