[nl]

(Genuinely curious): what do you mean that this is the flip side here?

In your case the camera not working doesn't seem to have caused any further harm (which is how I'd interpret "the flip side of the flip side" in this context).

It not working isn't helpful of course, and I can think of possible circumstances where it might have made things worse (removal of guards because of the camera etc), but these appear somewhat marginal (and are missing from your comment). One could equally argue that even a non-working camera provides a deterrent effect (eg, the "dummy" cameras one can buy).

What am I missing?

[simoncarter]

In that case, the presence of the cameras gave a sense of security that was unwarranted. It didn't prevent the crime from happening, but did let the citizens think that that their presence would detract criminals, which it didn't, at least in their case, and that if there was a crime, the culprits would have a higher chance of being convicted.

[philh]

To be precise, it didn't prevent that crime from happening. You seem to be assuming that the law-abiding folks reacted to the non-working camera but the criminals didn't.

[vidarh]

As far as I remember, there is little supporting evidence that CCTV usage in the UK have much effect on crime rates.