But at the same time if you took a fine red robe from a Dunmer and they reported it and you still have it in your possession then it will be hard to get off. Similarly if you killed a Nord with a giant maul and they apprehend you soon after and you had a giant maul on you well good luck. If enough time passes then items on your person can't be linked quite as strongly to the crime.
This would make you need to store stolen items in you're hideout or whatever more often. I don't want guards to somehow know your items are stolen though, so only items recently stolen and reported to the guards should be put into question (but there are a lot of leather helmets, glass daggers etc. out there, so the person who accuses you should have to prove it's his/hers, or at least persuade the judge)
EDIT: also this is where your priors would matter. If you're know for being a thief then it'll be harder to convince the judge that you didn't steal.
Ohh you can even develop a criminal past making it a little harder each time to clear your name, having to pay more for crimes and serving more time. Where is Skyrims Alcatrez?
Hm, maybe Labyrithian should just be a huge Prison/Dungeon now. It's been a long time since Arena.