The answer to that first question is a resounding YES. We can care about and attend to both. Victims deserve justice. But even "criminals" deserve basic human rights. Solitary confinement, labor abuse, and physical & psychological violations from prison guards are all examples of human rights violations occurring in US prisons. When basic human rights are violated, prisoners become the victims, too.
The answer to the second question is more complex - How can we possibly want to improve the conditions of their punishment and return to society?
I recall a discussion with a friend on state-funded college in prisons, in which he said, "Well how is it fair to victims, that someone hurts them in irreversible ways, and then that person gets to go to a place where he gets a free ride through college?"
My response was that there is a zero percent recidivism rate for people who earn college or higher degrees in prison. (And still, whether or not you have reform programs at your disposal, prison is an ugly place). I feel deeply for victims of crimes, which is why I believe prison should be a place where offenders can change, so when they get out, they won't create more victims.
First, one must understand this basic concept: Most offenders will get out of prison, and if they are not quote "reformed," then they are likely (70% likely) to re-offend. So victims and society stand to benefit from encouraging reform - such as making family visitation easier, allowing education and job training programs, stopping excessive solitary confinement, and promoting better support systems for a person's return home. This has all proven to reduce a person's tendency to re-offend - which means fewer victims and less suffering. A system that works is better for society as a whole.
On a final note, I think people find this conversation to be easier when we rule out the vilest of crimes - rape, torture, pedophilia, serial murder, etc. So the difficult question here, especially when it comes to human rights, is: People who commit heinous crimes don't respect humanity, so should we respect theirs? Perhaps people who commit crimes like that should be in a separate discussion from people who are in state and federal penitentiaries for drug offenses, petty crime, mental illness, poverty-related crimes, and crimes related to education (68% of state prison inmates did not receive a high school diploma) and behavioral issues. I'm not a psychologist, but I don't believe psychopathy can be fixed. The "heinous" crimes also make up a small portion of actual offenses of those incarcerated; therefore we should not use heinous crimes as an excuse NOT to address the serious issues occurring in our justice system. We need to focus on how to protect society from people who can't be reformed, and enhance society through the people who can.
What makes it so hard to talk about prison reform? It's not just sympathy and respect for victims. It's that society groups all offenders into one category: criminals. Less than citizens. Less than human. That label will stick with them the rest of their lives, no matter what their offense. But I have seen people change, repent, reconcile, and rebuild - and shouldn't that be the point?