I suspect (but do of course correct me if I'm wrong) the "joke" is implying that a lot of the people with dyed hair, piercings and glasses, on top of being SJW snowflakes, are also supposed to be trans. (They also all seem to present as fairly young and "white". Not a very diverse image, folks.)
And since the belief in some circles is that transgender ideology is a rampant mental illness, society would therefore be healthier if we incarcerated them for life with no parole in "asylums" (aka psychiatric hospitals/institutions to use more 21st-century language) for the good of all.
Plenty of murderers get "life" which often means 20 years, by which point they are now safely rehabilitated to rejoin society. But if you're deemed "mentally ill" by top medical experts on Imgflip, you are clearly a persistent danger to others and should be locked up for "good" (of all) with no chance of reprieve, and that makes our society more civilized.
Ivanka Trump also apparently had a blue-hair phase, but she's not trans or an SJW so she's probably fine:
https://www.businessinsider.com/ivanka-trump-had-a-punk-phase-in-the-1990s-2017-10
Some of you may even be well-read enough to recognize this fellow, who is also a big proponent of dyeing his hair, but also clearly 100% mentally healthy, so the asylum rules similarly won't apply to him:
https://www.vanityfair.com/news/photos/2015/09/an-illustrated-history-of-donald-trumps-hair?srsltid=AfmBOopWZbnWxuDezSDUK1Y_ADyPklW1oQk4-F0ToiT0WjfL0IbGp6Xo
Likewise, this dude, another fan of dyeing his hair. But again, it's not blue or pink (trans colors indicative of mental illness), and he can probably afford a good lawyer (himself) so he'll probably be fine too:
https://www.rfi.fr/en/international/20201120-no-time-to-dye-trump-lawyer-leaks-hair-colouring-during-bid-to-overturn-election
As for this individual, it's a bit of a gray area (or rather, a pink area) whether they qualify for claiming asylum, so Imgflip's team of top legal and medical scholars shall have to use their professional judgement and expertise on this one:
https://waghostwriter.com/39301/news/trump-takes-tyngsborough/
And this example of a young dyed-in-the-wool (I mean hair) Trump fan (again, sort of a purple area):
https://archive.attn.com/stories/5809/young-trump-supporters-explain-stances
While we're at it, a good idea would be to ban hair dye in any rainbow colors to prevent this sort of youth indoctrination and radicalization happening in future.