Interesting questions. I'm wondering what cross-section of answers you'll get of the mamapedia community. Because there always seems to be at least one "beat it out of them" response to any behavior question. I still remember the woman who responded to "my 12 month old cries and fights when I try to put her on the changing table" with "hold her down until she gives up and stops crying, even it takes an hour or more." To me that is more than borderline abusive.
I've now raised 2 stepkids from teenagers to adulthood, and am starting again with an almost 3 year old. I can count on one hand the number of times we've doled out "punishment." The most notable was with my stepdaughter, who did not one, but 3 offenses (breaking curfew, and worse) in a very brief period, and not only did not seem remorseful but had an attitude.
We grounded her for a fairly long period. Go to school, come home. No other contact with the outside world. Her dad was working from home a lot, so it was easy to enforce.
Our clear (and stated) purpose was to reassert our authority. It worked, as least as far as we could tell at the time. I think one of the reasons it made such an impression was it was unusual, it was severe, and it was instituted without any additional drama. We essentially said "you seem to have forgotten who is in charge, and we have to remind you." In fact, we may have said exactly that.
Another one - when my daughter was a toddler, she wanted to go down a steep hill, and I wanted her to hold my hand. She refused. I carried her, crying loudly, through the town and refused to put her down to walk until she held my hand. I've done a few similar things, mostly around listening when I stay stop or other safety issues. And again, it has nothing to do with the specific offense, but is focused on making sure she knows I'm in charge and that there are certain times and ways she MUST obey me without question. There is explanation, because want her to understand why there is potential danger, but she always MUST hold my hand in a parking lot or crossing the street. And if I yell stop, she best stop without question. Otherwise, she does not have the right to walk alone.
Other than that, we distract, we praise good behavior, and ignore or calmly discuss problem behavior. We never hit (except for 1 swat on the bottom when I was at my wits end and she was soapy and kept trying to stand up in her bath). We try never to yell, and if we do we apologize.
But she knows we're ultimately in charge, which is the one key.
Parenthood is essentially a benign dictatorship. You can sugarcoat it and pretend you have a democracy. Parents can try to abdicate. But ultimately, you are in charge. Your kids know it (or should) and you should know it too. You don't need to spend a lot of time threatening or blustering, or actually taking away all their stuff (although it is occasionally tempting), and you certainly don't need to hit them. You are better off making sure your subjects are well taken care of and feel loved, so they don't try to revolt.
My parents raised me the same way. They never spanked me and were not authoritarian at all, but I never questioned that they were in charge. It was just part of the landscape.
FYI - My daughter is incredibly well behaved for a kid her age, and not just obedient but cooperative, because she knows our requests (and they generally are requests) are with her best interests at heart. Many people who've dealt with her have commented on her behavior, so I know I'm not just blindly believing this is true.
Her brother and sister (now adults) are wonderful and productive members of society, and have very good relations with us.
So, to all those that say "positive discipline creates monsters" I say "not in this case." Positive discipline is not permissiveness or abdicating your parental authority. It is being secure in that authority and just assuming it as a basis for interacting with your child, without bringing it front and center (at least very often). If you know you are in charge, you can move on to teaching your kids and helping them grow into independent adults.