the only way crime will happen is in the absence of law, especially in a game like this where guards have awesome pimp staffs infused with teletranquiporting magics. since criminals have no chance if caught, they take their crime outside cities and octarchy jurisdiction, so it's not really even crime. it may not sound logical, but in a virtual roleplaying game, crime exists because of crime fighters. in real life, it's the opposite. but ps isn't real so it's all for the thrill rather than survival. there's no thrill in knowing you're going to be punished no matter what. however, that's if the guards will find out. if they don't, player characters can't actually enforce anything, so a criminal could do anything he wanted. after a while, that gets old. there has to be an element of risk and gamble; otherwise, there's no point to crime (unless you're a very good roleplayer with victims who are also good roleplayers).
having all these new abilities like pickpocketing and breaking and entering aren't going to create more crime. someone will try, someone else will get pissed, and the devs will stonewall crime. because it's offensive or some crap like that.
only way i can see crime working is if gm guards are replaced by player guards with limited power (meaning no pimp staffs). there'd be room for griefing, but that's why we have real gms, isn't it?
i'd type more but i'm lazy and gtg
also, i think i missed like half your post...