Yes, crime should be de-incentivized ,and not punished. There are many ways to decrease crime, before happening, like improving communities, organizing a local community better. I guarantee you petty crimes like burglary and larceny would rarely happen if a community is united. There are other way for other crimes.

I don't find the impinging of freedoms good at all, non-invasive and peaceful methods are already available to reduce crime, there is absolutely no need for endless survailance and agressive policing. Psychology already has the answers, its just that it's not mainstream.