Person who needed that cloth will now find people who can be trusted, create community, friends, their "circle"(you know, MMO n ****). That warrior will eventually will not be able to create raid because no one will trust him. He will marinate in his own poison or change his ways willingly.
Yesterday one rogue was killing AH NPC's and people called to ban him, not as a joke, but seriously. Instead of forming hunting party or taking revenge in enemy city. And it is related. If that is not an "alarm bell" that something underlying has gone wrong, then idk what is.
[it is out of players hands because dad will step in] that is what these rules convey. It's not about who stole what item, it's about letting players play in sandbox instead of telling what kind of sand cakes people can or can not make.