I see you're doing this trolly devil's advocate thing again.
And if I were to do the same, I would agree. Shipping homeless, criminals and others who might tax a country in various ways to islands can be a really good strategy. It comes with moral and humanitarian costs, but ignoring that, the principle is sound.
There are a few practical problems, though. First, technology has made people very mobile. If they don't like the island, they will probably move away. If not by the technology available on the island, then by the help of others in the world outside it. If they don't come back to the society they got exiled from, they would simply migrate to another country and become that country's problem. So, politically it's difficult. You could keep them in a camp or something, but then it's basically just a far off prison.
When England did this and shipped people to Australia, the world was a larger place and they didn't have to worry about international politics so much. Today the world is different. Just executing people might be easier?
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