Incarceration is not the only tool in the box. I think most criminal charges are disposed of without incarceration. It'll be a fine or a probation order. The probation order might include an order for restitution to the victim.
The biggest issue with respect to restitution is not the order of restitution; it's the ability to collect it. So, of course, many victims are not getting restitution because there are no means. There are some programs. Saskatchewan, for example, has some very innovative programs to improve the amount of restitution paid to victims. But I'd say most sentence dispositions in Canada are not incarceration.