http://psychcentral.com/blog/archives/2008/12/13/can-blue-co... gives some more reasonable account (part of the change may be that people do not commit suicide _there_) and references the paper in question (http://phys.org/news/2008-12-blue-streetlights-crime-suicide...) which is titled (emphasis added): "Blue streetlights may prevent crime, suicide".
Unfortunately, I cannot find the text.
As to the effect, I now think it may be real in the sense that it prevents suicide on impulse. People who are suicidal all the time will probably find another place or method to do so, but people who just feel miserable and have suicidal impulses may be prevented from jumping.
And of course, that may change once people have grown up in cities that are illuminated sky-blue throughout the night.