This "punishment" has nothing to do with virtual goods. The punishment is for real-world violence / threats.
If you steal a virtual item in a virtual world with a virtual character, the only possible punishment should be virtual - for example the player's character thrown in a virtual jail, etc. The only time real-world punishment should be introduced is when a real-world illegal activity takes place.
Stealing or any other "crime" within a computer game is all part of the simulated world you accepted to be a part of when you played it. If you're paying a subscription to a MMORPG or something, you have to accept that everything you work towards in the game and try to build up may be lost under the rules of the game, and there's nothing you can do about it in the real world.
If you steal a virtual item in a virtual world with a virtual character, the only possible punishment should be virtual - for example the player's character thrown in a virtual jail, etc. The only time real-world punishment should be introduced is when a real-world illegal activity takes place.
Stealing or any other "crime" within a computer game is all part of the simulated world you accepted to be a part of when you played it. If you're paying a subscription to a MMORPG or something, you have to accept that everything you work towards in the game and try to build up may be lost under the rules of the game, and there's nothing you can do about it in the real world.