I think I said this earlier- if criminals are going to get astronomical jail fees from multiple bounties (thus sorting out one perceived flaw of the KWS), make criminal activity pay wildly more as well.
This will:
Make criminals actually care about dying- if you were going to go bankrupt due to death, you are going to be more keen on living and being very wary of BH or scans. This automatically makes lawless areas more appealing.
Black markets and piracy should be x 100 more profitable- make clean traders sweat over the temptation.
Proper piracy should not be punished like murder. You should have fines for smuggling, assault fines (for limpets and non lethal violence) and murder bounties.
I don't see a problem if homicidal maniacs have to be ever more desperate to live and avoid being made penniless. I was a BGS homicidal maniac and wanted this to happen as you actually get consequences to actions.
If a criminal gets busted to 0 credits then since money is so easy to get it won't take them long to work up again.
I agree with some of this. IMO Illegal stuff should be more profitable, only that is unfortunately something which is to be considered and to be looked at later.
Smuggling IMO should actually be more risky, so a bounty (like with Wanted Passengers), just like assault and attempted theft (hatch-breakers) currently are but the amounts shouldn't be in any way comparable to murder, and thus would be much easier to pay. (which the New C&P kind of manages to do by adding in ship value components to the equation, which only apply in the event of murder, in theory anyway as beta never actually worked properly in this regard apparently).
Keeping bounties (or changing them to bounties in the case of smuggling) would actually be a reason to make them more profitable, if you turn them into fines, why should they become more profitable, well, I suppose piracy actually should even if it was only fines because it's in a ridiculous state ATM, but it would also mean victims can't defend themselves, hence it's a bounty which is what it should be.
Murder is really the only thing that will get you those astronomical jail fees, and quite frankly I don't see how this should be a problem which affects the KWS.
The problem with the current KWS mechanic in the new C&P system, IMO has nothing to do with the BGS like some said in this thread, It seems to me that the problem is purely based on collecting bounties in jurisdictions where criminals are not going to be detained (i.e. Anarchies) which would kind of be exploitable (since the criminal wouldn't have to pay any penalties other than ship rebuy, while the BH gets paid bounties). Hence FD's latest suggestion of KWS not doing anything in Anarchies.
Part of this issue is based on the presumption that Anarchies are where criminals are safe, but I tend to think Anarchies are just supposed to be dangerous for both criminals and non criminals alike (no honor among thieves and all that).
The only way an anarchy is safe is that you can attack anyone without actually accruing a bounty, it shouldn't be that you can't be busted by some BH that followed/found you there, you should be safe from ATR, and Cops, that should be it. Other pirates should still attack you and perhaps an interesting mechanic could be that Pirates in anarchies would prioritize attacking those using/having a KWS because they are an extension of the law (while not actually being the law), because a KWS could force them to pay the penalties (kind of a you were KW Scanned, thus you're escape capsule is scooped by the BH and taken to appropriate area, since we can't actually do the scooping of said capsule or capture criminals other than kill them, this would unfortunately be automatic).
But the real issue I have with this KWS nerf is that seemingly, what has been forgotten is that it's incredibly easy to not be wanted anywhere since bounties are to be attached to individual ships and will no longer be attached to commanders. So really if a criminal is dumb enough to use the same hot ship for everything and never change it, don't they deserve to go broke ?, all they have to do is fly a clean ship and they will be untouchable anyway, as the KWS scans won't be able to detect much on a clean ship.
TLDR:
Keep KWS as they are, criminals only have to change to a clean ship to be untouchable anyway.