There would be no peepholes allowing guards to examine them 24 hours a day and no random searches. Authorities could not read their mail or monitor phone calls. Sex offenders would be free to leave for good once it was determined that they were no longer a danger to children. For many offenders, that might occur late in life. Such communal confinement is not without at least indirect precedent.
Communal custody is also much less costly than keeping sex offenders in prisons or mental hospitals.
Indeed, there is no reason why offenders could not largely earn their own keep in these villages. The remaining costs would be borne by the state. While some critics have compared this proposal to leper colonies, the communal custody approach is better than any of the alternatives.