A public holodeck would be constantly occupied by the deviants of the society and it would just end up being a place where the lowest of the low congregate.
Isn't it better to have all the 'deviants' congregate in one place? Easier to keep an eye on them that way.
Your police state will be easier to manage that way.
Since I came back to this thread, I might as well continue.
If you are telling me regulating *public* holodecks is equivalent of running a police state, then we already live in a police state right now in the US. Let's replace the word replicator with the word library.
In a public library, people aren't allowed to be nude, people aren't allowed to have sex in, people aren't allowed to bring guns and have target practice, people aren't allowed to hold rallies or become a vendor or do a host of other things without approved permits.
Do you honestly believe what you are suggesting?