My own little book, The Art Of Community , explores the same theme from an anthropological perspective. It seems unlikely that any statutory enactment can ever contribute, on net, to freedom of action in the world. Customary law, on the other hand, such as common law, the Law Merchant, the Halacha, and so forth contribute in a major way to the freedom of choice people enjoy. Property owners in the course of administering that which they own, whatever it may be. This includes private courts and those who administer them.
Rules evolve through a discovery process of what works to the satisfaction of all parties.
Anything more formal should be established only on the basis of the consent of the governed. I suspect that those who use no violence or who use the least possible violence in enforcement will find themselves at a competitive advantage over others. There is no reason why there should not be prisons, if they represent a market opportunity. Like anything else, prisons would be run and paid for by their owners. Prisons would be community-like facilities operated competitively in the market, providing rehabilitation and opportunities for earning under conditions of safety in order to build up personal resources, pay restitution owed, and so forth.