Kids need boundaries and routine. This has been proven in psychological study over psychological study.
Kids need to hear NO. Especially young kids (in the toddler range). Trust me when I say that toddlers do not understand reasoning or choices. They are too young. As kids get older, offering choices is a good thing. But when a kid asks for cookies before dinner and they not only give him cookies before dinner but during dinner, the kid is not learning that he has 'choices' - what choices have there been? He's gotten exactly what he wanted, more even, without sacrificing anything. He's got his parents manipulated. But little kids don't need to be distracted (though that is a good technique when they are fretful but not actually doing anything bad) when they are doing something wrong. How are they supposed to learn that you are not supposed to draw on the walls if you aren't told no?
And time out is a time tested, good method!
(No I don't have kids, but I've read a lot on child psychology).