I think any system that trys to use fear (excepting fear of reprisal) is flawed.
What does the current system use?
There are two main camps that exist in the western world, as far as I can understand:
A. Guilt (used by religions to control people)
B. Fear (of going to prison, getting caught)
Sure, it's not fear for your life, but, as far as I can tell, people are still controlled by either guilt or fear. Can you think of another way to prevent people from committing crimes?
If not, I think we should explore whether guilt or fear is better as a means to prevent crime.