You describe the problem well.
The following is just my view, rather hastily written. I am not a doctor.
The number of subjects in the studies of anti-depressants is too small. An example: When Celexa was made available, it was regarded as an SSRI that was mild, produced few side effects and most importantly did npt produce the dreaded sexual dysfunction common to nearly all SSRIs. . Early users did indeed described it as very weak but little to no benefit, like a sugar pill. Many, many scripts were written. As the number of users steadily increased, Celexa was more and more frequently described as having too many side effects, and especially sexual dysfunction but capable of helping with depression. More subjects over a longer period of time before approval would have shown all this with a simple survey of patient responses
The atypical psychotics seem to be prescribed when other effective medications were lacking. Atypical psychotics were not meant to take the place of sleeping medications, anti-anxiety medications, anti-depressants etc but they were prescribed for those reasons
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Consider a patient with "major depressive disorder with psychotic features". The psychotic features are limited to voices telling the person to kill him/her self and mild but scary visual hallucinations. The patient also has a history of sexual abuse or PTSD for another reason. Such command hallucinations are surprisingly common among PTSD sufferers
If someone noted they were hearing command auditory or certain types of mild visual hallucinations, it should be a good sign to inquire about possible history of sexual abuse, history of violence, car accidents etc. as soon as possible. Not to do so is poor practice. The atypical anti-psychotic is often prescribed to muffle the hallucinations not a psychosis. Sometimes they help, and sometimes they don't but they are not like taking aspirin.
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The sexual abuse trauma or other cause for PTSD needs to be treated a such not just the major depression.
The atypical psychotics become the go to medication to help those with symptoms when other medications failed such as insomnia but a medication like Abilfy was never designed to be a sleep inducing agent.
A casual review of the internet will show that anti-psychotics are used for other things besides psychosis.
Sorry for the short-hand. I am trying to cover an awful lot with little space.
I am saddened that so many people, including myself, do not have medications that help us without causing significant side effects.