Carroll, you seem to forget the deterrent effect of punishment. In fact, we use negative sanctions (i.e. punishments by another name), such as frowning, avoidance, withdrawal of affection, spanking, slapping, etc. in every day interaction to deter certain forms of behavior. Th eonly difference between this and the criminal justice system is that the latter uses a much more formalized froms of sanctions than those used in everyday life.
We may debate whether a particular sanction deters a particuluar form of behaviour (an issue most frequently raised in connection with capital punishment or formal vs informal sanctions) - but it would be utterly naive to deny the pivotal role punishment plays in maintaining social norms and rules.
wojtek