I like item 1-3, but item 4 is IMO pretty tragical - to be prepared to kill those who are accidentally wrongfully accused just because the society can't afford a decent system of justice... Of course you could have those given prison get death penalty with their consent as an alternative to prison, but that too is risky and might cause problems like those currently in China where death to criminals is used as a way of plundering organs, sometimes in cases where it's not clear if the criminal was really a criminal - because the requests for organs is huge.
A good solution to lack of prisons for those accused of petty crimes is to attach to their legs an electronical device currently used in many countries. They may not leave a certain area around their home or try to take off the electronical device, then an alarm is sounded. Also the device has GPS functions in it so it's easy to localize the criminal if he tries to take it off or he moves out of his territory or he has committed a new robbery or similar and tries to escape from the scene of crime. That way you outsource prison to the homes of the criminal. It's not as bad as prison, but it serves well at keeping the criminal from committing more crimes. They can't really commit crimes while that device is attached to them. It's a form of surveillance that is acceptable for two reasons - the guys getting it have shown that they're criminals AND they're aware of the surveillance. Research seems to show that criminals given such devices instead of prison don't break the law when they wear the device. Remember also that since the device is a lighter form of punishment than prison, you could convert 1 year in prison for robbery or similar to 2 or 3 years of wearing the device. Going back to crime after wearing the device is also less common - people who use it don't get institutionalized. The costs for using the devices are perhaps high in starting cost, but extremely cheap in maintenance, as they can be reprogrammed and used for a new "inmates" after another has used it. These electronical devices could replace prison for most petty crimes and prison could be reserved for murder, rape, pedophiliacs, drugs, mafia, trafficking and large-scale economical corruption affairs.
By the way increase in prison capacity should be proportional to population growth. If the population has grown building new prisons isn't a far-fetched or strange idea IMO.
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