Wow, this must be so incredibly difficult for your wife. I am also a survivor of sexual abuse, so I understand how horrible and emotional this must be for your wife. I am so sorry that she is going through this, and really--that your entire family has been affected by this criminal.
It is in my opinion, that the police need to have this information. They need to know your wife's story.
It's entirely within the realm of possibilities that the police will be able to do nothing. However, they need to have this information. They would want this information.
It's quite possible that there are other victims that the police know about. You just never know. I'm just throwing a scenario out--but it's possible that there were other victims who were unwilling to testify or who decided to avoid testify, to avoid the trauma. My point is--that you never know what the reality is.
I have no idea if your wife coming forward could affect this man's parole--or if it could help the police. However, it may prevent this man from ever hurting anyone again. This man is a serial child rapist. It is highly likely that he will harm another child. These people are rarely, if ever, rehabilitated. Our prison system isn't exactly a therapeutic place. If anything, he's probably angry and anxious about his adjustment into society--and these types harm people out of anger and their own frustrations.
Oh my gosh--I will be thinking of you and your wife. I am sure she is going through quite a bit--just contemplating his release and what that means. Of course, this man won't recognize your wife. Do you live in the same town as this man? The police could actually be quite helpful in your wife's healing. I imagine that they will applaud your wife for having the courage to come forward.
I know how hard this is, and how much fear there is. However, your wife can take some of her power back by telling her story. I do not know what the police will offer or how they will handle this situation--but your wife can defend herself now and break the silence.
You are a terrific husband for being so concerned and for asking for advice. I hope others will provide comfort and good advice, as well.
Take care--Please keep us posted if you feel comfortable. 
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