Absolutely. It's discretionary.
It isn't “shall” prohibit someone from owning guns; it's that you shall take these things into consideration. It's important. I suspect that if Roméo Dallaire, in spite of having a history of depression that led him to give away his firearms, were to apply for a firearms licence today, he could probably qualify.
Again, I think that's a misrepresentation to suggest that because you can consider these factors, any one of these factors will prevent you from having a firearm.
We saw the same thing with the references in spousal notification. All those do is to potentially trigger a more thorough investigation.