The school would exist, but only as a normal high school. Curbing it is recommended to a certain extent, however the amount of time it would likely to take to save up the money to do this, other portions of the plot will have been set in motion, and there will be a fair amount of in-game deterrent from leaving the Inaba region until the mystery has been solved.

As for hitchhiking... good luck. These small-town drivers, and even those passing through aren't likely to pick anyone up at all. ;)