Democracy is not magic. A failing state is a failing state, regardless of the system of government. Great rebels rarely make for great politicians.
http://www.independent.co.uk/news/world/asia/rohingya-muslim... https://theintercept.com/2017/04/13/burmese-nobel-prize-winn...
Myanmar got their freedom. Now, there is another problem and the current establishment isn't doing enough. And, what you shared is, again, the world media covering these lapses. Suu Kyi did a lot right in the fight for freedom, but doesn't make her infallible. Perhaps some one else from within Myanmar will rise up and champion the cause. And, the world media and external entities do their part to help in terms of coverage, spreading awareness, diplomatic pressure, sanctions etc. We cannot just brush off the efforts of the latter saying they are doing it just to please themselves.
https://www.ted.com/talks/eric_x_li_a_tale_of_two_political_...
But I cannot help but feel saddened, to reduce the prize to a level of the publicity it conveys.
Neither can I eradicate the thought that awarding such a prize in this manner surely is felt as a provocation by the Chinese government as you rightly point out that the sole effect is of publicising and canonising a man whom they are, by their values, imprisoning justly for admitted subversion.