I agree with you about (2) but not with (1). In fact, for a lot of my bikey friends, theft is a huge consideration for which bikes they'll take where. I think the big point you're trying to make here is well taken! I just wouldn't want to create the impression that CPD is going to do anything meaningful about bike theft. :)
Yeah but those people haven't chosen not to bike entirely because their bike might be stolen, they won't take their nicest bike to sketchy areas. To me that's a meaningfully different thing than what the person arguing is claiming.
Don't get me wrong, I'd never wanna give anyone the impression CPD is ever going to do anything useful at all lol :)
Really the only points I'm willing to push are:
1. Theft is not a major deterrent for people considering whether or not to ride a bike,
2. Homeless people are not spared from prosecution, nor are they particularly more likely to steal bikes.
You're definitely not wrong about recovery, but that's a somewhat different issue than "DAs refuse to prosecute thieves based on housing status"