That's not quite how it works, as I doubt they have to present a court with the full suite of surveillance based evidence you suggest...
But - they do have a fairly strong incentive to reach a settlement out of court, and that is because the railway then keeps all of the money you pay in that settlement, whereas fines to courts go into the 'government pot' apart from the victim surcharge type amount, plus a sum for the fare evaded, as I understand it.
But there are cases where they will feel it is necessary to go for a more punitive approach with people who have evaded fares (probably persistent evaders, those who have then sought to avoid the process after having been stopped etc etc).
Evidence from these forums is that if you engage with the railway now and co-operate within processes, apologise etc, there is a very strong chance that things would not end up in court.