It’s possible that there would be unintended bad consequences. But we can try it out and course correct if that happens. Unless there is a specific bad that will definitely happen, why should we be afraid to try things?
I’ll answer my own question: we are afraid to try new things legally because gov is unresponsive. As an example, the majority of the US has supported cannabis legalization since at least 2012. If it takes a decade and counting for the law to change to follow the will of the people, trying new things risks locking in bad policy for decades / forever.
But this law’s already been passed, so if it’s bad and should be changed we’ll need proof of specific harm
Or that, at the very least, there are likely to be unintended consequences of bounty-snitching that create some other set of strained social pressures you also find unsavoury.