They did: basically all the yeerks were turned into nothlits in book 54.
The peadophile and mental health help thing was just a way to deal with non-nothlit yeerks.
Also transgender community could really benefit: One of the saddest things (I think) is that while a man may have an operation to give him a hole and breasts. s/he will never have an orgasm and more importantly the thing that makes a woman a woman (rather than just a fake idea of women as pretty creatures that have long hair and a dress) is her ability to bear children/create new life. That is all. A transgender man would be able to acquire his sisters, mother, cousins, father etc and then morph a female version of himself thus rendering him truly female. Likewise the thing that makes a man a man is not his logical mind and trousers but well his ability to father (though this is not as spectacular as a woman's ability to create life IMHO) but to me the most appealing thing about men (and the only reason I would want to be a man) is a man's unobtainable physical strength,which in all honesty, no amount of martial arts training in a woman will ever equal... So a woman turning morphing a man to become a nothlit would gain the truly important things about malehood: physical strength and fathering ability...