Scandinavian prison model isn't about retribution, it's about rehabilitation. We understand that humans are animals whose behavior can be modified. Where the standard socializing institutions of school and parental care failed, the necessary evil of prison will ideally attempt to modify the prisoner's behavior to have him become a better citizen and hopefully secure some sort of dignified future in his wicked world.
Our view of humanity, contrary to the liberal view of humanity that emphasizes personal freedom and responsibility, roots in the idea that humans are fundamentally shaped by their environment. A criminal almost always becomes a criminal due to a bad social circle or neighbourhood and being able to recieve some sense of identity in an unhealthy sphere of crime: Without any proper adult role models, if the parents drink, for example, or if the school teachers are inattentive, the growing human being may take onto itself a sense of self by joining a gang with its own traditions and close-knit sense of security and brotherhood. It's seen with rocker gangs in Denmark where they pick up kids with low social capital and give them their own titles and jackets, making them feel safe within the criminal group. And in that tune, we hold that Breivik as an individual is a product of his environment and as such will not be punished forcefully, but that he shall be rehabilitated, as our society will attempt to help him with the things it failed to do in the first place. We're succesfully socialized people, not murderers. Why would we then cancel that development by acting like them?
(this is in general, not about Breivik)
I do generally agree with the Scandinavian system based on rehabilitation.
However if the system was completely about rehabilitation you should not have maximum prison terms, but only minimum: a criminal will get out only when he fully understands his "mistake" and he is ready to be a productive member of society again... no matter how long it may take.
One may also say that such a rehabilitated person will understand the hurt he made to his victims and will gladly accept a punishment to repay, at least in part, the damage done to his victims.
"Punishment" can be social works or devolving all his income to pay damages or anything like that.
I also tend to agree that humans are fundamentally shaped by their environment, but at the end you always have the choice to do right or wrong.
If one cannot distinguish between right and wrong mental deficiency) than he should be locked in a mental institute for his own good.
But if one can distinguish between right and wrong, then he should accept that there will be a consequence for the crime and he has to pay for the damage done to people and society.
Prison conditions and sentences should reflect this.
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LOL, I was thinking the only way to 'punish' him would be to ensure that all of his guards and cooks were foreign immigrants, not of his religion, nor native born---and to parade it before him every day.
I don't know about the guards and cooks, but surely most of the people in Norwegian prisons fit that description (being immigrants etc.).

Pun apart, there is very little discrimination in jobs in Norway (especially state jobs): the employees outlook at the prison will be surely multi-ethnic and it will rub on his face every day.