Militarization is not the problem.

We just need to go back to the militia system. This country was nearly 80 years old before the very concept of Police were introduced.

Frankly, we don't even have to go all that far. You could easily decentralize the police into a heavily volunteer and reserve force that is mandatory by residency. You'd effectively still be re-introducing the militia system, but in a much more centralized form.

Frankly, however, the biggest point to note is: why are the cops there anyway?

Police, by their nature, are going to be using force on people and getting their hands dirty, and knuckles bloody. It's why they exist. Why did you need to send the police at all? Answer: because you destroyed all forms of social enforcement and self-policing in your own communities and mandated the state handle all disputes.

Remove the jurisdiction of the police, and they won't be punching people in the face that you don't want.

Beyond that: I don't even have a problem with militarization. Militarization is more honest about what the government effectively looks like. If the cops can't solve the problem with a bayonet, and up-armored vehicle, a fully automatic carbine, some flash-bangs, and a sting-ball grenade... then why did you call them? Let them be fully militarized, and then let the public realize that the police are not here to sort out your stupid bullshit neighborly disputes.