Should criminals be put in prison?

In Loving God, Charles Colson argues that restitution to crime victims rather than punishment and incarceration is the appropriate means of dealing with criminals.
He cites Exodus 21 and the example of Zacchaeus in the New Testament as a basis for this.

Colson points out the intriguing history and etymology associated with the introduction of prisons in the USA. Penitentiary is derived from "penitent". Quakers advocated that criminals needed to be punished and incarcerated until they were penitent and repented. This resulted in the opening of the first state prison in the USA in 1790 in Philadelphia.

The Black Hole of Calcutta by Louis Figuier.