-Restitution: Reimbersing the victim
-Retribution: Punishing the criminal
-Recuperation: Stopping the Criminal from commiting crimes
-Prevention: Stopping others from commiting crimes
Well, "Reimbursing the victim" obviously isn't going to happen, and isn't likely to be too useful from our point of view. "Retribution" is similar - I don't really care if my legendary stonemason attacked someone, I still don't want the hammerer to smash his bones! "Recuperation" is the only one that currently works, as being in jail helps boost moral (if you do it right) and they can't cause any damage in there. "Prevention" is one that could be added in - perhaps a well oiled justice system would cause dwarves to think twice before throwing a tantrum?
See, your talk about 'retribution' starts to bring in economic considerations - your legendary stonemason is more valuable to you than random cheesemaker #23. Should that matter in dwarven justice? It starts to bring in class considerations. Much of modern law is concerned similar issues.
I'd be totally down with a legendary stonemason getting away (literally) with murder - either because of his economic worth or his connections with the fortress leader - but then having vengeance meted out by family or friends of the deceased. Or possibly a representative 'judge' noble from the mountainhomes coming to your fort if too many cases are being decided apart from traditional dwarven notions of justice, and your dwarves are complaining.
Also, dwarven justice seems to occupy a strange midpoint between civil and criminal law. The civil part being the whole failed-mandates punishment thing. Though the punishments even on that scale seem more criminal than civil.
But the civil-criminal split is relatively recent, in some ways. Back in medieval times many 'civil' crimes (debt, certain batteries, lying about products, etc.) were punishable by jail time or public humiliation. And some borderline civil/criminal cases (assault, battery) were merely punished by damages. Frex, there's an assault case from the 1350s where the defendant was ordered to pay damages - no fines or jailtime sentenced.
All that said, I'd be totally down to start a thread on this in suggestions, though it might not technically belong there.