Pompey's solution was to resettle them in inland areas elsewhere where there were other ways to make a livelihood.As you rightly point out the current options are squalor or pop on a boat and grab some hard currency. Worst case you get to visit another country for a bit.
If a significant percentage of pirates did not return home the perceptions would change about the risk:benefit.
Hammering villages only indicates that there is almost equal risk on going to sea as staying on land and is counter productive.
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