Indeed, I think the fact that so few people are being prosecuted these days means standards are slipping. Yes, have unmarked vehicles used solely for policing drivers and cyclists and not pull them off that duty for other crimes or incidents. And yes, use the fines to fund other police numbers.
I think it might be a good idea to employ specialist road traffic officers in unmarked cars simply pulling everyone on the road when they commit offences. The amount of crap, dangerous driving there is plus all the cyclists who ignore all common sense and ride without lights etc would keep them...
I think it's the only logical response to Moped crime, if you don't pull over when you have the blues and two's going behind you then you are guilty as charged, so fair game.