You are absolutely spot on that there is a whole BGS dimension to npc murder that the C&P addresses. I imagine serial murder of NPC cops can be effectively deterred through the C&P system.
Not at all.
Three of us put a system into lockdown by just killing cops. We all had notorieties of 10 and many 10s of millions in bounties. Not a big deal. Just another Fdev annoyance. The notorieties are easily removed and the bounties don't matter and can be easily paid off and earned back.