RE: The fall into Homelessness.
CPS is a corrupt criminal racket.
I wouldn't be surprised if that's a case in some countries, with commercial entities running big orphanages and bribing officials. In other countries and time periods, maybe the CPS is abused for political control, i.e. targeting parents by their political views. I wouldn't be surprised if "someone told us the parents are socialists" would be sufficient reason for the US CPA to react under the McCarthy age. But if you're implying that all the CPSes around the world has some kind of shared agenda ... then I must say, that do sound like one of the more crazy conspiracy theories to me.
Parkinson's law may be relevant though, any bureaucratic organization do have some internal growth pressure.
The agencies; enabled by the personal choices of their employees are vile, and there is plenty of evidence to support the fact.
Such a system can only be based either on personal opinions from their employees or on stupid rules (like "you must be registered on a permanent address of living"), both things may be equally bad - yet, what are the alternatives? While for some the obvious answer would be "kill the whole agency", I do believe it's important with such an agency; children do have rights, and they are not able to look after their rights all by themselves.