Yeah those other prisoners that got sent on looked thrilled to be going to prison 'paradise'.
No one gets thrilled by going to prison, even if it's a nice place. Still, it's way better going to a Humane prison than risk dying on a terrible accident with the Spore Drive or being butchered by Klingons.

Besides, that scene implied the other prisoners were attempting to make Burnham afraid, since that was probably the first time she went to prison. Their dialogue implied they had more experience with the criminal system and they were just trying to poke fun at her since she was the "new girl".
To be fair, the one Burnham had been at didn't sound like one of those. This is sort of mid-transition where those reforms have begun but seem not to have reached all of them yet. And even then, it turned out Adams was subjecting at least "incorrigible" prisoners to experimental mind tortures!
Yeah, we haven't actually seen a Federation prison in Discovery yet. I think the TOS line about "prison resorts" may apply to Discovery's Era too. The concept of Humane prisons fits the spirit that the Federation is this Progressive Space Utopia. Lorca himself said they extinguished hunger and war. So it's believable that the Federation already is this Utopia in Discovery's Era, despite the gritty aesthetics and some anti-ethical characters.
Lorca himself implied Michael would've been way more comfortable in some Federation Prison than on the frontline of the War anyway. We will probably see the Federation Prison system in more detail if Lorca gets arrested by the end of the Season. All we have for now are those TOS lines...
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