τιμωρουμένῳ: the passive of the middle. See H. 499 a; Kr. 52, 10, 11.
ἢ παραδείγματι κτἑ.: in this also, as is shown by what follows, the object is improvement, but of others rather than the one punished. The terror-theory is put in the mouth of the Sophist in the Protagoras, who says Prot. 324 b ὁ μετὰ λόγου ἐπιχειρῶν κολάζειν οὐ τοῦ παρεληλυθότος ἕνεκα ἀδικήματος τιμωρεῖται, ἀλλὰ τοῦ μέλλοντος χάριν, ἵνα μὴ αὖθις ἀδικήσῃ μήτε αὐτὸς οὗτος μήτε ἄλλος ὁ τοῦτον ἰδὼν κολασθέντα. Plato's theory concerning the punishments of the lower world implies, though it does not expressly mention, the doctrine of the wandering habits of souls which he expounds in other treatises. For the dat., cf. 479 e, and see G. 136, N. 3; H. 941.
φοβούμενοι: because fear leads to reflection, reflection to more correct views, which result in avoidance of evil and corrupt moral habits.
ὠφελούμενοί τε καὶ δίκην διδόντες: the second partic. is logically subordinate to the first (“by undergoing”), though formally co-ordinate. See on 460 d. The correlative to οἱ μὲν κτἑ. is οἳ δ᾽ ἂν κτἑ., in c, which assumes that form on account of his proximity to οἳ ἂν ἰάσιμα κτἑ.