To the best of my knowledge, police that resell seized guns do so to FFL holders, after checking to see if they were used in a crime, who then run background checks on perspective buyers so this really seems like a non-issue. I don't see a problem with this, especially after seeing historical firearms that should be in a museum end up in a buyback bin to be destroyed. Springfield 1903s, STG44s and Colt 1903s just to name some off the top of my head. If gun seizures end up netting historical firearms (and I have no doubt they do) then fuck yes I say sell them to an FFL or give them to a museum. And non-historical firearms I have no trouble with either because the gun seized from a methhead can be resold properly to a person needing protection from an abusive estranged partner. Will they fall into the wrong hands? They might, it's happened before. But they can, and do, also end up in the right hands far, far more often.
And after skimming the article, I think I can sum it up by saying: "GUNS! NRA! BE SCARED! BOOGY BOOGY!" Yes, I am jaded on fear-mongering articles like this one because I see it all the fucking time from "journalists" who know sweet fuck all about what they are talking about and want build up sensationalist bullshit out of a non-issue.
I am operating on sleep deprivation and my fuse is mighty short so this post might come off a little more heated than would otherwise be deserved.
*EDIT*
Interesting coincidence, this is my 1776th post.