This is the orthodox view among experts in the subject, so yes
https://www.bbc.com/future/article/20180514-do-long-prison-s...
https://www.theguardian.com/society/2020/jan/27/prison-exper...
https://newsroom.unsw.edu.au/news/business-law/do-harsher-pu...
All in all, I’d rather not aim for 100% detection + swift punishment as the improvement metrics for deterring theft.
The thing is, even if you spend more initially on stopping crime, it will eventually drop off as people work out you can no longer get away with it. Spend the extra cash collecting all the security video and know it will teach one person that they can not get away with theft and that person will likely communicate it with their peers.
I would personally rather spend $600 extra in tax for police over having the negative feelings of a $500 item being stolen.
I don't believe much in terms of privacy has to be lost as most of the time we already have the data, we just don't have the human resources to do anything with it.
You apply that to every Karen's favorite pet laws and suddenly we're all living in 1984.
Look at the opinions of HN for example. You've got a subset of people who think speeding should be a shoot on sight offense. And you've got a subset of people who think littering should be a shoot on sight offense. You've got a subset of people who think that anyone who uses power equipment before 10AM is Literally Hitler(TM). I'm being only slightly hyperbolic here. It all adds up. The road to hell is paved with good intentions.
Fast feedback loops are the key here.
I'm convinced that the solution to crime is not to increase punishments, but to make the speed and likelihood of being punished fast and almost certain.
If theft had a 100% detection rate and a punishment greater than the value of the item, you would never steal anything because it would be pointless. The problem is we let people get away with it multiple times and then eventually destroy their lives over it.
Airtags and other anti theft tech can help here. Make theft extremely difficult to get away with and people will not bother.