Earlier quoted context omitted.
Then prison as a punishment will stop becoming a punishment and will reduce incentive to abide by laws
If how terrible prison is what backs your incentive to abide by laws, I'm worried. Criminals generally don't expect to be caught, the quality of prison doesn't matter much if you're not planning on going there.
if you replace prison time with home arrest, then you remove downside to being caught. Especially for second/Nth time offenders.