What if Thought Police existed for benign purposes

Imagine an omniscient AI that records your every thought and controls a satellite network that vaporizes criminals at the moment of their intent to crime being actualized.
How would society exist in such world after the AI takeover?
Will it better or worse?

Were such a system possible, crime would be limited to a small number, say ten, distinct universally-reviled acts, and punishment deferred until after an appropriate opportunity for rehabilitation had passed. The punishment would be permanent exile from the land of the righteous, and this alone would result in eternal suffering.