Unexpected boxing in generated code

I've got an inner loop that I think I can see is strict in the Int argument being passed around, but that GHC 6.6.1 isn't unboxing. In the following example both functions take a GHC.Base.Int, which I think should be an Int#.

Rec {
f60_rS5 :: GHC.Prim.State# GHC.Prim.RealWorld -> GHC.Base.Int -> GHC.Base.Int
[GlobalId]
[Arity 2
 NoCafRefs
 Str: DmdType LL]
f60_rS5 =
 \ (v1_aWH :: GHC.Prim.State# GHC.Prim.RealWorld) (v2_aWI :: GHC.Base.Int) ->
   case $wccall_r2kv v1_aWH of wild_X2j { (# ds_d1V4, ds1_d1V3 #) ->
   case ds1_d1V3 of wild1_X2L {
     __DEFAULT -> f60_rS5 ds_d1V4 v2_aWI;
     (-1) -> v2_aWI;
     10 -> f561_r2kx ds_d1V4 v2_aWI
   }
   }
f561_r2kx :: GHC.Prim.State# GHC.Prim.RealWorld -> GHC.Base.Int -> GHC.Base.Int
[GlobalId]
[Arity 2
 NoCafRefs
 Str: DmdType LL]
f561_r2kx =
 \ (v1_aWm :: GHC.Prim.State# GHC.Prim.RealWorld) (v2_aWn :: GHC.Base.Int) ->
   case $wccall_r2kv v1_aWm of wild_X2j { (# ds_d1V4, ds1_d1V3 #) ->
   case ds1_d1V3 of wild1_X2P {
     __DEFAULT ->
       case v2_aWn of wild2_a2du { GHC.Base.I# x_a2dw ->
       case wild1_X2P of wild3_X35 {
         __DEFAULT -> f60_rS5 ds_d1V4 (GHC.Base.I# (GHC.Prim.+# x_a2dw 1));
         10 -> f561_r2kx ds_d1V4 (GHC.Base.I# (GHC.Prim.+# x_a2dw 1))
       }
       };
     (-1) -> v2_aWn
   }
   }
end Rec }

This code comes from a line counting program, I have attached the entire source. My character counting program does infer the correct strictness, although that is based on a single self-recursive function. The largest obvious difference is that the strictness depends on the two functions which call each other - does this impeed GHC's strictness analysis?