The problem here seems to be that the police are actively supporting the protesters and will do none of those things you listed to remove them. The police seem to be simply defying orders. I am guessing the capitol building workers are also unionized and supporting the protesters as well.
Apparently Walker and the Republicans decided not to force the issue. It looks to me like they backed down. There might be a good reason for them to do that, but whatever the case it gives the protesters a win and further momentum.
Plus the chief of the Capital Police is likely a Democrat.
Walker doesn’t have to do anything....the budget doesn’t get passed and no state workers get their paychecks...just let them rant hoot and holler...but no welfare recipients will get their checks because the budget isn’t passed and the state school systems start to shut down.