I'm not familiar with how DA's (district attorneys) do or do not operate, but it makes sense to attempt to rehabilitate if possible and punish harshly in the event it doesn't work.
In this case, the Veterans Treatment Court is based on the already somewhat successful Drug Treatment Court already in use in Buffalo, NY.
There is an area of thought concerning illegal drug use to treat it as a health concern rather than strictly a legal problem. Obviously the "drug war" hasn't worked so the public health option might actual combat the problem in a better way with better results. Treatment, counseling, etc.
Many veterans in trouble with the law are having trouble with adjustment disorders following combat, PTSD, and anger issues that also may respond better to treatment, counseling, etc, rather than just incarceration and punishment.
Time will tell.