I am amazed at the fascination everyone has for the Hamilton character! I think I got more emails about him than anyone else in the story, maybe even more than Carl himself. Trust me, he will play an important part in the story for many years to come, but there will be vast stretches of the story where he won’t be mentioned.
As for what would somebody do about such an individual, remember that fifty years ago the options were quite limited. Most medical plans did not cover psychiatric treatment. Unless you were foaming at the mouth, you generally didn’t get treatment. The drugs available were quite limited compared to today. Furthermore, the social stigma was immense. My mother once claimed my brother had never seen a shrink, even though my father had told me he had. You lied to everyone about it, even immediate family.
By the way, as for the questions about Daisy, she goes on to live a long and happy doggy life with Suzie, her new master (mistress?)