It is a city with many problems, no one can deny that, but like most urban tales told by people who don't live in these places, their understanding are much more urban legend than reality.
I have lived in Baltimore for the past 6 years and I am hopeful about the future of the city. I live in Mt Vernon, one of the more "upscale" neighborhoods, in the time I have lived there, there's been a good deal of development both in the neighborhood and the city as a whole.
I am actually looking at buying a house in Bolton Hill (another quite nice and safe neighborhood)...the property tax rate has given me pause but otherwise I am excited about the future of the city.
I don't want to go on a rant but Baghdad type stories like yours are not helpful.