I don't see how new traffic lights would change this.
Btw did you visit Istanbul in the end of 80's I believe it was the only time The city was packed enough and that situation maybe seen because I can remember those times, now its different though many of the traffic lights have cameras that trigger with a red light pass, even there were accidents the first few months cameras were installed people were braking harder than usual to make sure they stop :)
As for deadlocks, Istanbul transport authority changed thousands of streets to one way or changed the rules of many areas to stop that in the last 5 years, when were you last in Istanbul seriously :) ?
And police does care, if you are involved in a red light violation and police is around you are not screwed but definitely get a ticket.
As for traffic violations and police stops, don't make me laugh. Driving in Istanbul is carefree - do whatever you want whenever you want (which is why there are so many road deaths... I don't think I know a single Turk who doesn't know of someone relatively close who has been lost in a traffic accident). You'll rarely if ever be stopped by the police. The only time I've been stopped or seen people stopped is by late night alcohol checks or trafik polis running spot checks - both of which you can always pay your way out of (and I have).
I know Turks are generally nationalistic and proud, but please learn to have some introspection, look inwardly, critcise and laugh. Too many subjects on the internet concerning Turkey or Turks get mobbed and trolled by Turks trying to put a positive spin, just because they don't want to see their country portrayed in any bad light internationally.
When I was there most crossings looked somewhat like this (warning: terrible video quality): http://www.youtube.com/watch?v=0cYdHUmG100 (I had a green light when I passed this crossing as a pedestrian).
Also Cairo is definitely worse than Istanbul.
Over the past 10 years something weird happened, people started buying cars, and some people would buy more than one but as most people live in apartments in Istanbul it appears as though there are more cars on the road than there are parking spaces in some areas (I know this is the case where my in-laws live near Nisantasi).
In my experience Istanbul drivers will mostly adhere to traffic lights, but not necessarily to things like zebra crossings and road markings. The worst drivers tend to come from the countryside as they don't necessarily know the road layout and drive as though they're in a village or open countryside.
I've been told quite a few times that the only reason the fatality rate from car crashes is not as high as it should be is because for most of Istanbul it's hard to drive faster than 50kmh for any period of time.
Of course, if you really want to see what 'driving by inshallah' is like, then you need to go to Saudi Arabia. When god determines whether or not you live or die, there's no point in driving properly.
And only the old Istanbul (historic peninsula) is claimed to be built on seven hills.
Given these circumstances, just imagine the stress on the drivers.
But the best part: I live in Asia and work in Europe. My 2hrs is an intercontinental journey.
As an aside - I don't know anyone who cycles in Istanbul. Is there a cycling commuter community there?
If you are able to drive in Istanbul, you can drive in everywhere.