Well, my opinion is that in a world without psychopathy, there is no place for psychopaths. What kind of planet do you want to live on? Sometimes tough choices have to be made. Now, some of the garden variety psychopaths might be productive as heavy laborers, they would be given a certain minimum of comforts, but could never become full fledged citizens because they're too dangerous. However, the more clever and calculating ones as well as the hardcore sadomasochists would be executed in some form or fashion in many of the ancient societies that this model is based on.
The problem with this, of course, is once you give the government the authority to execute undesirables, the door to totalitarianism is opened in short order. Presently, there is no definitive way to identify psychopaths, which is why I think the template did not expand on how to handle them. Ultimately, I think this is a problem with a metaphysical solution, there must be a way to tune one's reading instrument to recognize one's level of Being, and if there is a certain level of nastiness, you pretty much know what you're dealing with. You could then have a "public viewing" in front of the populace, and a consensus decision could be made. However until, this ability is developed in humanity, your hands are kind of tied and anything you do is a pretty sticky wicket.
One alternative solution would be to sterilize those that have the genes for psychopathy, and see if you could breed it out of the gene pool, but I have this feeling that 4D STS can engineer as many psychopaths as it needs, and the problem won't really go away.
Another possibility is what the Cassiopaeans said about psychopaths being "failed OPs." Is it possible to modify the metaphysical environment so that these OPs, no longer "fail?" If you have a society that is led by souled individuals aligning with the thought center of Being, and this energy overflows and fills the authoritarian follower types, would it create some kind of group resonance that would inoculate them against the predations of 4D STS? That would be an ideal solution, but it again relies on metaphysics that we don't fully grasp. I'd be interested to see if the Cassiopaeans could give some guidance on this matter.