> "severe punishments to little to deter crime."
I have seen some evidence that this is the case specifically for the death penalty. I've seen little to suggest that it holds true throughout more general cases.
Nevertheless, even if we rule out deterrence as a possibility, we're still left with incapacitation (http://en.wikipedia.org/wiki/Incapacitation_%28penology%29). That undeniably does work, and it works damn well. The thought of being locked up in a cell may not deter a free man, and it may not cure a captured man, but it will prevent that man from victimizing innocent members of the general public again.
You don't need silly concepts of supernatural souls or good and evil to benefit from incapacitation. No matter what we think of any of these issues, the fact of the matter is that Ted Kaczynski is unable to mail a bomb to people like you or I.