Because it is excessively gamey and is FAAAAR too corrupt to take seriously.
It is still an order of magnitude less ridiculous than "you stole a wooden spoon from me! Now I and 20 other unarmed civilians will fight your party of heavily armed warriors 10+ levels higher than me TO. THE. DEAAAAAAAAATH!!!!!!"
I still like that you go to jail depending on the crime and might actually have to get busted out.
I HOPE you can game over by having everyone go to jail.
There's always been some kind of out if everyone goes to jail, whether it's teleportation, lockpicking, sweet talking, or deals with the devil. I wouldn't see an game ending thing there.
