In every human society in history, there have been people who choose to rob, rape and kill. There's no pleasant way to deal with such people, but it is the role of the state to deal with them, or you have anarchy. It isn't the role of the state to prevent "emotional damage", "bad wives" or "bankers".
Stafford Smith's position seems to be a twisted version of Christian morality where all problems are caused by meanness. Since the justice system is an institutionalised form of meanness, it must be wicked -- indeed, it's probably responsible for crime and terrorism.
This is a really evil worldview.