There's a movement in some law circles towards "Restorative Justice" which I think is even more forward thinking than Norway's prison system. It focuses on the victims interests instead of the governments (imagine this applied to Aaron Swartz).
> Restorative justice (also sometimes called reparative justice) is an approach to justice that focuses on the needs of the victims and the offenders, as well as the involved community, instead of satisfying abstract legal principles or punishing the offender.