I can find nothing wrong with the concept, only the execution. Everything has been done badly before and everything is a slippery slope. So, no changes should ever be made in anything because everything leads somewhere bad?
Look at what your government is up to now simply because the technology exists to do it. If only we hadn't invented cameras or the internet, we'd be so much more free. So, for my postulations, I presume it will be done correctly and that it will advance society, not impair it.
Crime is a true melting pot so at least no single race or creed will be chosen.