Just because we yidden who read the news are used to hearing stories of smugglers getting caught, has no bearing on sheltered yidden in eretz yisroel who might not have heard of the past events. Drug dealers are indeed preying on the innocence of charedi youth.
I don’t see how we have the right to be a prosecutor and decide the fate of another jew who has not been tried in a beis din. We have no concept, in most cases, of jail. We definitely don’t have an idea of jail as a punishment in halacha. Who are we to decide that another jew should rot in a jail cell to “learn his lesson”? The gemara says that jail is worse than death (im pretty sure it’s in bava metziah, I have to check it up later). We sometimes take our cues from what society around us thinks is appropriate.
Also, I’ve heard the story about rav schwab before; comparing a rov not wanting to help a dishonest businessman who got caught to a case of a young person who probably was not aware of the severity of the situation is mistaken. Helping ganovim is a chilul Hashem and that might take priority over freeing a jew from jail. It would still be our responsibility to make sure he has tefilin, etc…being a ganov doesn’t mean you’re no longer jewish, or that we have no responsibility to him anymore.