That makes sense along the lines of their second proposal, but doesn't address the concerns of the first. Part of democracy means voting for the folks who govern you, but a prisoner might be left unable to vote in an election for the local state or municipal governments.

Fore example, someone with a 10+ year sentence has a compelling interest in local candidates that have different platforms that will affect the parole-rules and phone-call-costs next year.

You could let them choose between that and where they're locked up. I think that's generally how it's worked for college students, although some states are now trying to keep them from voting in their college towns.