@Throwawail
Yes it is. Foucault would be truly fascinated and scared at the same time.
jk
Honestly tho, it could have been worse than it is. Most of the psychological damage comes only from the characters' sense of self-worth. If you truly wanted it to be hell, you would also ensure your prisioners.
1- Lacked any privacy what so ever.
2- Making it so the means of subsistence would only be given to those on top. Making the rest fight for leftovers.
The headmaster might be a piece of crap, but she knows that all the money thrown in the gacha for the high ranking heroes is enough to fill everyone's belly. If this was a drama and not a comedy, things might be a little bit more harsh.