players that are arrested on 5 or 6 stars should be sent on a maximum security prison and cannot do a jailbreak. they could be sent to the Los Santos Prison, Dwayne Island, and the prison for Las Venturas. also, there is a lab near Area 69 that could be a perfect location for a new prison.
Kazutoki Kono himself bestowed me the power of all eight ace combat protagonists whenever an enemy seasparrow shows up
I remember seeing a building which might look prison like in LS can you tell where it is.
About the Dwayne island thing - How do criminals make their way tback to the main city afterwards? Plus we have to grind our skills to jail break successfully so not being able to do them would be quite annoying
Crime rates are relatively low these days, and such feature might make the current balance even worse. However, if it's designed as a two-sided system where civilians can also attempt jailbreaks with C4 and similar stuff to free their friends... there's a chance that it works.