That's definitely a good question, and a hard one. No one there due to having a low socio-economic status wants to live there but they can't afford other places that would give them the same access to work (and even leisure). Location-wise, it's extremely practical to live in a favela (and it's interesting that in California, for example, the rich people generally live on the hills, whereas that's not the case in Rio).
At this point, as it has been for a long time, favelas are just part of Brazilian life and they've grown to have their own culture, social norms, vocabulary, etc. So, if favelas are to be done away with, it will have to be done with sufficient resources, extreme care and to the liking (can't think of a better word) of the residents themselves.
While they live in favelas, they want dignity, respect, and access to basic services (ex, Rocinha has an open sewer at the bottom of the hill). So these things will have to exist where they end up living, and during the transfer process.
There are several prime cases of favela removal in Rio (Pinto, Catacumba, Esqueleto) in and around the 1960s and 70s. The residents were removed to City of God, and some run-down areas near the international airport (Complexo do Maré, etc). Also, in the first few years of the 20th century, there was a large mandate to destroy and remove favelas in downtown Rio (called the "bota-abaixo") which did beautify these areas, allowed for sanitary services to be installed, etc. Most of these residents just moved to other places like Rocinha and Vidigal on the other side of the city. So, even if they're "removed", they end up equally poor in a less desirable (to them) location in the same city.
At this point, as it has been for a long time, favelas are just part of Brazilian life and they've grown to have their own culture, social norms, vocabulary, etc. So, if favelas are to be done away with, it will have to be done with sufficient resources, extreme care and to the liking (can't think of a better word) of the residents themselves.
While they live in favelas, they want dignity, respect, and access to basic services (ex, Rocinha has an open sewer at the bottom of the hill). So these things will have to exist where they end up living, and during the transfer process.