Additionally, remember that the goal of prosecution and punishment is to deter crime, and so you should not only consider the cost of prosecution vs the cost of stolen item, but also the cost of all the crimes you enable when the thieves learn there is no punishment for petty crime.
This is a very good point.
Prioritizing social trust and cohesion through omitting or ignoring by misdeeds of institutions or individuals that are too big to fail seems like extra effort to achieve nothing. It isn't real trust and cohesion, it is deception and coercion.
If you don't do that, you get ridiculousness like this: https://www.theatlantic.com/technology/archive/2019/11/steal...
Fines work to deter crime of people who have something to lose, but those who have nothing, and live off crime, don't care about the fines.
I agree with regard to public opinion but the people who set policy keep trying to sneak policies that decriminalize petty crime with a victim into policies that are portrayed as reducing victimless crime.
Anecdotal example:
A local to me DA with political ambitions released a list (not sure if it was a proposed list or final list) of crimes he wasn't gonna prosecute. The list was mostly sensible but it included things like "theft under $250" which is insane because without the risk of prosecution the ROI on petty theft becomes positive and you are basically encouraging it. Predictably, there was widespread backlash against this (proposed?) policy. I think this kind of thing is what the GP is talking about.