Agreed in advance that a phenomenal rate of incarceration is not the only means of reducing crime (or, as the thesis would have it, of shifting it into the inmate population) - but I'd find it hard to buy that we should turn our back on a working solution without a better one. As the article points out, 70% of released prisoners are rearrested within three years - we are largely not rehabilitating the prison population today, and fixing that would be the means I'd advocate - which would seem to also have the effect of lowering inmate-on-inmate assaults, rapes, and other violence.
I'm a bit at a loss as to why the answer would instead be a vast reduction in prison sentences (without some other substantive change making this viable)...