http://mises.org/daily/2265
more simply, the response from the community.
thieves, rapists, murderers, those who commit fraud, folks like that don't generally do well with people who value rights. Just like now.
instead of fearing retribution from the state, they would have to consider the consequences of their actions from the rest of the people they live with.
fear of prison obviously isn't a deterrent to millions of people incarcerated in the US - what prevents infringement in today's utopian US state-managed system?