Thanks for sharing. But this doesn’t sound like a system, it’s more like one of a myriad of options at the disposal of a Dayan. Was there ever a time in Jewish history when this was practiced in any sort of regular basis?
If I understand correctly this is parallel but separate to the king's right [citation needed] to administer as necessary.
IOW torah's punishments are 'true' justice (body and soul), both others are, by definition, for the purpose of keeping society functioning.
and, almost by definition, if we were ruled by a local dayan, not a king, refers to golus times where we probably didn't have the authority and autonomy for this kind of thing on a consistent basis.
that said, there are tshuvos, and there probably were times. see for example tshuvos rivash tshuva 251