How does it encourage dangerous driving when it actively punishes dangerous driving?
Because the people who habitually drive badly find out pretty quickly how to game the system and not face the consequences, and/or consider the fines part of the cost of driving how they want. Fines don’t stop bad behavior, they just put a price on it.
Before you dismiss me by saying I just want to get away with speeding, consider that it’s easy to fight a ticket from a camera- in most cases, you just don’t respond and it goes away, though of course that varies with jurisdiction. If I wanted to get away with dangerous driving, I’d be all for replacing cops with cameras.