This is a fine place for discussion, and I always welcome questions, comments, and criticisms. These are all incredibly helpful to me for thinking through revisions . . . and I hope useful for others interested in these topics as well.
I think the easiest way to approach your question is to clarify that (for me) individuation is not a desirable state or anything like some kind of universal goal for all modern individuals. I see individuation as a particularly radical adaptation to extreme diseases of identity that has much in common with shamanic initiation (albeit without the monotribal, ritualistic context and containment). In essence, there is no containment to individuation in the modern environment. And this lack of "containment" means there is no identity for individuants (which I would differentiate from individuals, which is a name for what we would consider the fundamental social unit of value or unit of identity in our society).
Identity requires a social relationship and a kind of social contract. Without containment, individuation becomes the severing of such social contracts of identity construction. The individuant is therefore invisible in society and can only be (very inaccurately) "seen" by others as an adherent to one group or another. The individuant's individuality is unrecognizable because it is not constructed substantially from associations with groups or tribes, and when understood by others as if it were so constructed, it is simply misunderstood (sometimes very drastically).
As a useful illustration of what I mean, I always refer to Ralph Ellison's Invisible Man, which is the best and most honest (albeit fictional and deeply symbolic) portrayal of modern individuation I have yet come across. Ellison's nameless protagonist is "invisible", because he has individuated himself from all of his group identity constructions (although they are still with him in a consciously related way). The world and others around him continuously make claims on his personhood, trying to identify him with one group or another . . . and he rebells in various ways against all of these. As a result, he is simply not "seen" as a distinct identity or person by others.
My feeling is that there is no place for individuants in the modern world because the modern world is not monotribal. An individuant can only have identity in a monotribe (although, as with shamans, that identity is probably going to be established through rituals, totems, and taboos). This identity will not be "accurate", but it will give the individuant a social role and connection to the tribe's sociality.
Although Jung was very clear that individuation and individualism were very different things, he still imagined that individuation could be a functional and not uncommon social process ("elite" perhaps, but not extremely rare). Essentially, the idea was that patients in analysis might experience individuation as a form of "cure". But Jung didn't understand the relationship between tribe and identity. Like the romantic he was, he imagined identity as something in-born and probably biological. And therefore, individuation was a process whereby that inborn identity that had gotten mucked up through various socializations and personal injuries would be restored to some kind of actualized original state, a "true self" if you will.
This romanticism about "true self" was (and is) hardly unique to Jung. It was common to many forms of romanticism, and it actually went hand in hand with volkisch Germanic ideas of race, blood, and earth. But the romantic true self idea is not ultimately workable, nor is it compatible with individuation. It is true, I think, that individuation helps excavate and focus on aspects of genetic predisposition in one's personality, but these predispositions are not, I feel, terribly distinct and definite. They are by no means "determinisms".
What individuation is more capable of illuminating is the arbitrariness and constructedness of identity . . . the ways in which identity is deeply dependent upon participation. Also, how identity characteristically breaks down, dissolves, and is reformed. It tells us not "this is who I really am," but, "who I am is a matter of who and what I am related to."
Although I think Jung and Jungians are wrong in many of their individuation theories, I don't think their theories are untenable. That's why I would point to an idea like Eliade's where three types of initiation are differentiated yet they all have a similar (we could say "archetypal") pattern of death and rebirth. One way of psychologizing the difference in Eliade's initiation types would be to say that each relies on a somewhat different construction of the Self.
In adolescent initiation, the Self is understood merely as the tribe, and the relationship to the Self is defined by the responsible relationship to one's tribe. In secret society initiation, the Self has a more specialized representation, Self as elite. In shamanic initiation, the Self is individual and accessible within (rather than through a group and its beliefs, totems, and values). The shamanic initiation may feel that the Self is divine and universal or omnipresent, but the relationship with the Self is entirely personalized . . . and this means that identity in the group/tribe is not the mediator of selfhood or individuality for the shaman.
But the universal initiation pattern that all these modes have in common is a healing pattern for identity. That is, diseases of identity can be treated through this kind of pattern/process, because they seek to connect dissociated or damaged identities to a Self object (tribe, elite, or personalized Self). Jungian analysis heals (when it succeeds) by connecting dissociated identity to the Jungian tribe or some kind of spiritualistic tribe Jungianism associates with or in some ways approves of. In fact, Jung was very clever in his recognition that healing (at least in people in the second half of life) often requires a reconnection to their inherited religion (albeit in some revisioned way).
Jungians seem to take this as a commandment to "get religion" (which means it is a dysfunctional therapeutic system for atheists), but what patients really need is to reconnect their identity to a more or less functional monotribal Self object . . . and religions tend to be more monotribal than just about any other social body in the modern world. Jung sought to understand universals in religions and to unite them under his generally spiritual approach. So a lapsed Catholic could return to a meaningful form of Catholicism via a Jungianized path. A lapsed Jew could rediscover a meaningful Judaism through Jungianism. As long as you have or had a religion, Jungianism will take you in and mediate your new version of the old religion.
That usually required a movement into the abstract and symbolic. So the new "social institution" would become Jungianism, and Jungianism would refashion the particular relationship to Catholicism, Judaism, etc. In this way, the institutional issues that often lead to modern people straying form their childhood religion are softened, and (through Jungianism), the individual can have a non-institutional relationship with the god of their old faith.
What Jungianism has still not realized is that the Jungian "cure" depends largely on the willingness of the patient to become indoctrinated into the Jungian tribe or one of its associates. That doesn't mean one joins a cult, but one has to accept a body of totemic ideas and a few dogmas. One may or may not be able to continue on in direct relations with their old faith and its traditional adherents, but there will at least be a Jungian or adjunct Jungian community to "re-experience" Catholicism/Judaism/etc. through.
It is community (even when that community is largely figurative and abstract) that heals identity wounds by connecting the dissociated ego with a Self object. That may or may not lead to long term "enlightenment" . . . but it is fairly likely to heal the superficial identity wounds of a patients (so long as they don't resist indoctrination). Freudian and post-Freudian psychoanalysis works the same way (but without the specific emphasis on religion). Basically, Jungianism is modern monotribalist identity therapy for religious types and psychoanalysis is modern monotribalist identity therapy for non-religious types. But both religiosity and non-religiosity are entirely arbitrary to the method of cure by indoctrination or the reconstruction of and reattachment to a new, more monotribal Self object.
Of course, this is radically different than individuation, which accepts no external Self objects or totems and is not served by indoctrination techniques. In individuation proper, these tribal identity affiliations have failed utterly or are in a process of collapse so severe that no re-indoctrination would ever work. The only solution is to find some sort of system of being directly through relationship to the Self within. IT is the only Self object left, and relationship with it requires enormous sacrifices that (in the modern world) are not clearly worth the losses they demand.
But life, as a kind of "force", persists. The Self is chosen and valued because life moves in that direction, because the individual doesn't want to die or give up (indefinitely). Where the Self system triumphs over injury and adversity in this way, the individual typically becomes a strong advocate (or what I would call a "facilitator") of the Self, embracing the restructuring of personality and identity that serve the Self system (rather than trying to usurp it). Just as the tribe (as Self object) sustains identity for members that are indoctrinated, so the relationship with the Self individuation engenders serves as the foundation of the individuant's identity. But that relationship is a kind of work (The Work, I have sometimes called it). It is neither subservience nor dependence. It is a state of continuous "custodial" tending to identity and the Self system . . . all done with the Other/others in mind. The individuant comes to realize eventually that all selfhood is a function of relationship, that it "belongs" to others. That doesn't mean the individuant transcends selfishness (or anything else). It just means that the sense of "who I am" is understood to always be highly situational. We become selves in relational contexts. That doesn't mean we can determine selfhood (quite the opposite). But we are always being created and re-created as we relate to others.
The individuant doesn't say, Yahweh-like, "I am that I am." S/he is always becoming. Selfhood is always "out there" being forged and constructed. And that can be terrifying or frustrating at times. Most people would experience it as a loss of control or too great a vulnerability. And in truth, there is no real advantage to this fluid selfhood. It is an extreme adaptation that should really be considered a last resort and not preferable to conventional adaptation and identity construction.
So, when we look at "individuation events" (i.e., movements that follow parts of the individuation process but are not in themselves entire individuations) in the world, we are generally not looking at anything so extreme. A "complete individuation" is fairly catastrophic and not particularly adaptive to the modern environment. But many people experience smaller individuation events, often with very positive results.
As I said previously, the condition of the modern individual is very atomized and polytribal. We have various competing identity systems writhing around in us, and no one of these is complete or self--sustaining (or usually Self-connected) by itself. But we commonly get involved with tribe-like groups and then "individuate" from them to some degree. That is, we see through the identity totems of that tribe and become (intentionally or not) dissociated from them. In doing this, we probably feel like we have differentiated our "true selves" from the group identity somewhat. In fact, this is quite common (although, regrettably still not common enough) with adolescent groups and identity constructions. Adolescent identity is strongly peer and participation based (but without any Self principle helping to organize and orchestrate it). It develops a lot of fairly dysfunctional collective traits that can increasingly strangulate many individuals as they move into adulthood.
Our society has tried to relieve this tension somewhat by taking on increasingly "adolescent" attitudes and ideas (especially in the popular media), so many can live in a prolonged adolescence as long as they have supportive/similar peer groups or enough money. Still, many (maybe even most) people tire of this identity and tribe and start looking for something more sophisticated and sustainable. Where we pull off this transition successfully, we often experience some kind of individuation event. But in almost all cases, we follow this individuation event with the discovery of and indoctrination into a new tribe (the "limbo" between tribal affiliations is typically experienced as hellish, lonely, and depressing). These tribes are most commonly professional and/or religious. But dissolving and individuating from the identity constructions of this second, "more adult" tribe may never happen (and may not need to). One may have a polytribal identity as say, a professor of psychology, a Jungian, a Catholic, a Democrat, a community volunteer of some sort, and a parent. These identity constructions may be arbitrary in many ways, but they will often sustain us pretty well in most cases (as long as our identity in these tribes is accepted and reinforced and our faith in them remains strong and not too introspective).
But where we might lose faith with these tribes and their identity constructions, we may be in for further individuation events. Yet even if these further individuation events are carried off pretty successfully, we will typically settle down into other tribal affiliations. And my point here is that this is okay. This is preferable. We only continue to individuate if there is a dire, adaptive need to do so, only when our identity constructions are not sustainable or are not reinforced by our tribal affiliations. More often than not, this (not uncommon) lack of identity sustainability results in various psychological disorders like depression and anxiety, and we don't fully recover or develop a sustainable identity. We eke our way through life, at least on many relational fronts (where our identities are more or less dysfunctional). With any individuation event, some kind of change has to be embraced in order to move through this dysfunctional organization of identity.
In the very rare cases of "complete" individuation, essentially all tribal identity constructions are dissolved and reconstructed. There is no "tribe hopping" (which is very common in today's polytribal environment) but more of a "de-tribalization" of identity that radically restructures the relationship between the individual and the tribe. It doesn't end the relationship, but it severs the unconscious or "mystical" participation in which identity is normally constructed. Conscious relationality (especially with tribes) problematizes relationships with tribes for a number of reasons. A big one is that consciousness of identity construction (i.e., recognition of its constructedness and its arbitrariness) is considered a taboo violation in tribal contexts It is a "sin" against the mystique of tribal participation, the "divine" consent and confirmation of the tribe's identity. One doesn't even need to be directly inquisitive or critical of the tribe's identity. Just poking around in the tabooed places more or less innocently is enough to generate animosity.
My general conclusion is that "complete" individuation is, if not precisely "pathological", at least typically dysfunctional. And the only "cure" for that dysfunction is the connection of the individuant to some kind of monotribe that will "employ" the individuant in a task that regulates, treats, or transforms tribal identity. It should be noted that, although psychotherapists are the heirs to shamanic healing practices, they do no function in a tribe in this way. They do not treat tribal identity diseases, per se. They are not therefore, by occupational necessity, "individuants". They are often in strong mystical participation with their psychotherapeutic tribe's identity constructions . . . and may not even be very well equipped to recognize or treat an individuating person. That is, they can treat by indoctrination, but those who resist indoctrination go off the map many psychotherapists navigate by. This is even true of Jungians who are the gatekeepers of individuation theory.
Probably the most common occupation for individuants and individuating people is artist of one kind or another. That doesn't mean that artists are individuated or have to be. It only means that artist is one of the only modern occupations where individuants can find a way to treat tribal identity, to treat the "soul", and find a sense of relationship and identity doing it. But in reality, individuant artists are very rare, too. The era of the individuant artists is perhaps over. Today, artists are indoctrinated into artistic tribes and schools. Academia (a very tribal institution) determines art more and more (as it is one of the only forms of subsidy for the arts) . . . and popular arts are increasingly determined by corporations that profit form the commodification of those arts (where commodification is at odds with individuation). Even where some individuality shines through in popular arts, the identity of the artist is maintained by a community/audience that may have very basic, perhaps dysfunctional desires from the artist. They may just want to be entertained or have their prejudices and beliefs reinforced.
Think of music today compared to some of the music of the 60s, especially folk musics that had political messages (early jazz was at least as culturally transformative in the 20s through the 50s until it was contained in either commodifcation or academicization). Today's popular music doesn't inspire people to change their worlds or themselves . . . and when it tries to it comes across as very particular, narrow, and stunted or tribalistic (e.g., Christian rock, etc.). It may be that commodification has helped sever popular music's relationship to the modern "soul". That is really depressing when you think about it . . . but I think that film still has the capacity to influence the "soul" in transformative ways. It can still bring sociopolitical and psychological issues into consciousness. Most Hollywood and TV productions are purely distractions and anesthetizations, but good and powerful films are still being made (both fictional narratives and documentaries).
My point is not to make sweeping critiques of the arts today, but to note that the space for individuants to find social roles is not increasing in modern society, it is shrinking. That is something Jung and the Jungians are not understanding. The trajectory modern society is on is hostile to individuation because it is hostile to monotribes. Or more accurately, it is inhospitable to self-sustaining, Self-connected monotribes. The modern form of monotribes are too tribally dysfunctional and dissociated to tolerate or encourage the participation of individuants in their construction of identity. But there is no wider environment for individuants. Individuants need their monotribes . . . are dependent upon their monotribes to grant individuants identity and purpose.
I don't really have some kind of romantic and magical vision about how this will all "work out". I do think that modern monotribes that can figure out ways to employ individuants are likely to find ways to construct more functional identity in the modern environment. But nothing like this is going to happen in the huge modern monotribes like Christianity. I suspect it could only begin in small monotribes . . . monotribes like Jungianism. If Jungianism could find a way to employ, rather than excommunicate, its individuants, it might even be able to function as a model of a modern monotribe. Of course, that is more or less useless to say, because there is no indication that Jungianism is interested in making the necessary changes or is even capable of change.