Of course, this was how it was in the Medieval world. It wasn't uncommon for peasants to be executed for petty crimes, and torture was used to... er... "encourage" the suspect to admit his crime - especially during the Inquisition.
However, here we're not talking about, say, Spain in the 1500s, but Middle Earth, which is, regrettably, a
fictional world. Now, all I have read is
The Lord of the Rings and
The Hobbit, but my impression is that torture, random executions, and abuse of power were not as common in Middle Earth than they were in Medieval Europe. At least, they should be limited to SOME races and cultures of Middle Earth - I don't see the Elves, nor the Dunedain, torturing anyone.
Besides, if you want to make it realistic - and by realistic I mean insanely realistic as the devs are trying to make this mod - you can't stick to ONE system of laws.
Middle Earth is an immense territory with different cultures and traditions. So, the laws of the Elves would be very different from the laws of Gondor, or from the laws of a small village in the Riddermark. The laws of the Rohirrim would resemble those of the germanic and anglosaxon cultures: a huge list of crimes, with the amount to pay (
wergeld) for every crime, but no real "philosophy" of right.
The laws of the Elves and of Gondor would be, in my opinion, more sophisticated.
Also, depending of whether you commit a crime in a big city or in a small village, the outcome woould be different: in a big city, there would be guards, judges, tribunals, and so on. In a small village, three or four stout fellows would just grab you and bring you to the village elder/mayor, who would then decide about your fate.
But maybe we're asking too much of the devs. You can't expect them to make a fully realistic dialogue for EVERY crime the PC can commit, like "So, you are accused of stealing a loaf of bread from Old McDuff's bakery shop. How do you plead?" - A: "Guilty, your honor, but I was hungry!" - B: "I swear, I didn't do it!"... now, I think THAT's expecting a little too much. The crime & punishment system should only be slightly modified, not completely overhauled. The devs are trying to make the Me-Mod as realistic AND enjoyable as possible, but if you want ABSOLUTE realism and if you want to be able to do ANYTHING you feel like doing, just go out and live