Ideally the magic would be in the rehab actually solving the problem. Maybe it's helping them get their lives back on track or correcting a mental health issue. I wouldn't say the thief loses money, a court taking guardianship of someone to do rehab isn't going to be a day at the spa or something. They're going to have to do pretty life changing work in that paradigm. I don't know if you've ever done enough introspection to change your life, but that is not some easy or fun endeavor imo.

The purpose of the criminal justice system wasn't to make you feel better or to get you your stuff back. Sometimes that happens but it's mostly by chance and not by design. Really, the system wasn't built to facilitate revenge, that's just the way it works now. That's where things like insurance come in. No insurance program is going to value a family heirloom the way you value it though.