And what the hell was it with sending every single person to Azkaban? They sent Hagrid to Azkaban, that can't have been necessary. There has to be more intermediate steps for lower level criminals who aren't risks to society.
Also I think that Hogwarts could do better with introducing Muggleborn students to magical society. Give them a buddy who comes from a magical family or something. Make Muggle Studies learning more about Muggles themselves, not just how electricity works.