Particularly in the elections that happened last year, proposals to "end impunity" (as lowering the age for being treated as an adult in court) have had largely more electoral effect and have been widely more propagated than projects for improving rehabilitation capability or respecting human rights in prisons. In fact, it's common to hear the maxim "Human rights for right people [and not for criminals]" around here to disqualify proposals of the latter.
Thanks to this public opinion trend, stories like those in the article about people who are able to "get out" instead of being arrested or killed are largely ignored. (Seeing them on Hacker News is easier than on the daily newspaper or even than on left-wing blogs which hardly have journalism potential to get a story like this.) It's nice to see them.
Crime can be solved in two ways, one of them is through the kind of policies you've mentioned. The other -- which may only work with crime committed or allegedly committed by the poor -- is by widespread oppression and institution of elements of a police state (the drawbacks are many as you can imagine). Brazil currently does not have the infrastructure to follow the former so it seems to be courting the latter; It doesn't seem to be in the best interest of politicians to work towards the better option. Possibly, who knows, because it would be the harder and riskier approach regarding whether it could bring them immediate votes and popularity.
The UPP project began in 2008 and - from my conversations with several people living in favelas - was part of a larger effort to improve living conditions, which it has to an extent; some favelas now have basic sewage systems, for example. However, the police presence was seen as ineffective and the project disingenuous in that it was inspired by the desire to make Rio a stronger attraction to tourists during the World Cup rather than by the concern for the welfare of people living in favelas.
Additionally, the relationship between law enforcement and residents was also quite crooked. The Guardian reports that "80% of Brazilians are afraid of being tortured by their own police force," but the study was conducted by Amnesty International. http://www.theguardian.com/commentisfree/2014/may/18/brazil-...
Last, I can't imagine policing in favelas to be an easy job. When I visited a pacified favela, the police unit walls were lined (50+) with large bullet holes.
It is also notable that Rio is just the marketing side of the country. The violence and misery in the northeast region is even worse, but it is not so much published.
Even São Paulo, which is the economic engine of the whole country, has such a contrast between rich and poor, and the "favela culture" is so spread, that it makes me want to leave this place and never come back.
People still transfer xml over the wire, you know :).