So your logic is: condemning people for criminal behavior is not useful because it de-incentivizes their victims from being vigilant against that criminal behavior. Am I getting that right?

No. My logic is that when it comes to computers, it's a battle of the brains: who is smarter than the other one. And the result is usually a novel way of attacking someone, and then finding novel ways to defend and on and on. So that's why I strongly believe in hiring smarter people to defend your castle, rather than swatting people smarter than you because you're not as smart as the other side.