Which all SOUNDS good, except for the FORCED ANAL RAPE part.
A hardened ex-convict knows exactly what the trade offs are. Is it really so far fetched that these people won't try to game the system? They can go to prison, get free room and board, and five years later walk out with $400k in hand when the alternative is working for minimum wage and barely paying for your existence over that same five year period.
You don't create systems that create incentives for bad behavior.
At a minimum it should be by a case by case basis. Not some rule that applies to all cases.
And I do agree that people truly wrongly convicted, especially if for a long period time deserve to be well compensated - which really isn't possible considering what they lost. The prosecutors/district attorneys need to have some major responsibility here - again on a case by case basis.