Every child is different, and time-outs just don't work for some kids. When used, the ideal is not to punish, but to give the child a chance to reset his emotional balance if he's upset and acting out, or to consider why certain behavior isn't acceptable. And the one-minute-per-year rule is actually pretty arbitrary – some kids will tolerate less, some would need extra time to regain their equilibrium. I also agree that you don't want crib or play area associated with punishment. But if parents take one or two minutes to quietly sit with the child, give him a chance to calm down if needed, and explain what the desired behavior would be, that will work well for many children.
With that in mind, some parents and child psychologists believe that there's nothing to be gained, and a great deal to lose, by a "punitive" approach. Especially if it turns into an extended struggle, with the child repeatedly escaping and the parent repeatedly dragging the child back to the time-out spot and starting the clock again. This becomes terribly hard on both the child and the parent, and since the idea is to help the child understand self-control and find calming alternatives to his behavior, what's the point? Both parties end up furious, upset, and often raging or crying – about the punishment, and the original misbehavior is completely forgotten.
Once the whole affair becomes a battle of wills, the parent, understandably, thinks she MUST win, and the only way to accomplish that is emotional and physical force. A child who's just beginning to understand himself as a separate being with separate desires and motives is understandably confused and frustrated by a setup that seems to set his parents against his most basic needs. The same thing can happen when we start taking away toys or privileges if the child does not see a connection between the punishment and the misdemeanor. The resulting antagonistic relationship is sad, confusing for both parties, and unnecessary.
A child does not come equipped to understand his own feelings and needs, and benefits from parents modeling positive ways to get these basic needs met. This mean communication, consisting of a clear expression of the parents' feelings, and clear acknowledgement of the child's perceived needs, and a respectful attempt to find acceptable alternatives.
Consider this: kids have the same kinds of feelings as adults, only magnified. If a grownup were punished by her boss through force, or shaming, or scolding, or isolation for doing something that seemed like the most normal thing to do under the circumstances (or failing to do something that was still outside her range of experience and choice), she would rightfully feel outraged at worst, or at least confused and counfounded. It would work better for everyone if the boss explained clearly what he expected, and ideally showed how it was done. With a child, it's necessary to be consistent and show the alternative again and again, because little kids just won't learn it the first dozen times. That doesn't mean that they can't learn, or don't want to learn, or would prefer to disobey. Cooperation is a gradually-learned skill. And kids do learn it, possibly even faster when their parents do their best to cooperate with the child's needs.
Many parents require the child to apologize after a misdemeanor. I personally think this is teaching the child to tell a convenient lie so he can get back to his play. It is fine, however, to model, early and often, the civilized art of apology. Just as with any other courtesy, children learn best by seeing, hearing, and receiving those courtesies.
Here are two related approaches many young families I know find to be sane, compassionate, encouraging and positive. For younger children, I'm impressed by the approach used by Dr. Harvey Karp in The Happiest Toddler on the Block. You can find a whole set of videos and interviews on this in youtube if you'd like to see this alternative in action.
For more verbal kids, I can't recommend strongly enough the wonderful book How to Talk So Kids Will Listen, and Listen So Kids Will Talk, in a clear, easy-to-read cartoon format. Though it's non-punitive (in the forceful sense), this is not parent-as-pushover stuff, but it does help the child understand how his needs AND his parents' needs fit together in the same household. You'll be glad you tried this approach!