I am in favor of this, but not a payment by government, as they are both fickle and chintzy. If instead there is a private fund to reward such people, it will likely be both far more honorable and generous.
I would like such a reward to be ‘pro rata’, based on the nature of the offense, the record of the offender, the risk to the citizen and their family, friends and other innocents, and, as with gymnastics, “degree of difficulty”.
Importantly, it would be best for all involved if such a private fund was very discreet in issuing its reward in cash, not publicizing it, and strongly suggesting that the recipient accept their reward in silence for their own benefit.
Your points are good. But I was trying to get government “on the record” to give someone a small amount ($500?) as official recognition that no law was broken, no prosecution would be forthcoming. Government sees what you did, and is officially glad about the action you took.