As PvP is optional, I don't think the crime and punishment system should revolve around it. You can almost always nope out of PvP in open unless you are in a paper ship or you have cheaters one shotting you in your Phantom with size 5 prizmatics and a couple boosters on. The other modes are generally PvP free. Got one shot today by obvious cheater, I just blocked them and will never have to deal with them again. So again, I don't think balancing for PvP in a PvP optional game is the right way to go about it.
Criminal activity should be handled better. But I am more of a mind that the system itself really only needs tweaking, and what really needs to be fixed is how capable the NPC's and their ships are. A military NPC only module to prevent high wake within 3-6KM would not be a bad thing either. If I am out doing a civilian massacre in a well engineered FDL/Krait2/Python2, ATR should be showing up in numbers in ships engineered to the same level as mine and be piloted by truly Elite NPCs that work together to get rid of me. They should have a better than average chance of killing me.
Criminal activity should be handled better. But I am more of a mind that the system itself really only needs tweaking, and what really needs to be fixed is how capable the NPC's and their ships are. A military NPC only module to prevent high wake within 3-6KM would not be a bad thing either. If I am out doing a civilian massacre in a well engineered FDL/Krait2/Python2, ATR should be showing up in numbers in ships engineered to the same level as mine and be piloted by truly Elite NPCs that work together to get rid of me. They should have a better than average chance of killing me.