I think that only violent criminals should be incarcerated and paedophiles/rapists etc.
Thieves etc should be rehabilitated, receive a substantial amount of community service, but otherwise be free within a set boundary and curfew.
I don't think there is anything to be gained by imprisoning lesser offenders, it costs us a lot to keep them indoors, they fulfill no useful function and there is no evidence that prison is a deterrent against a first offence or reoffending.