Well honestly, I don't have a problem with prisoners being made to work under certain reasonable conditions. Heck, I'm from Australia, a country which wouldn't even exist if it weren't for prisoners being made to work. And I think a prison where everybody is kept occupied is probably a better place than a prison where nobody has anything to do except work out and gossip.

Making 'em farm gold in a MMORPG, on the other hand, comes across as silly.