I haven’t played it and hate nearly everything I have seen about the age system, but they did make the map generation more varied in the latest patch. They’ve called the map inadequacies a priority to work on, so it will probably get better if you return to it down the line.
Deterence is not a great strategy for preventing crime. Criminals don’t actually do much cost benefit analysis before committing a crime; they will consider the chances they have of getting caught, but not the severity of the punishment. Rehabilitation programs are worth considering over punitive justice so long as they are more effective at preventing recidivism, which is certainly an interest for a state.
The problem is that then you need the government’s permission to procreate. There’s always the valid concern that the government would prevent you from having children to remove some undesirable trait from the population and justify it as being a danger to a child. I know you described basic competency skills, but there would always exist a very credible threat of it being politicized.
In fact, this already happens for things like queer couples being rejected for adopting children or the Uyghur population being quietly genocided in China. And Eugenics was historically practiced such that criminals would be sterilized as part of their punishment.
It’s worth pointing out that governments already intervene with unqualified parents by removing the child from the household. Shifting the burden of proof from the government needing to show neglect to parents needing to prove themselves worthy is a dangerous amount of authority to cede to a centralized, corruptible power.
Also, it’s not clear how you handle unlicensed parents. People are going to have unsafe sex no matter how illegal you make it. Would you push for preemptively sterilizing everyone and trusting it can be reversed after a license is acquired? Forcing abortions? Confiscating the child after birth?