I might at some point have said I don't like the words naughty and no 
But that doesn't mean we don't have boundaries and I don't ever stop my child from doing something or consider some behaviours unacceptable. It's just that I think there are better words to use. No and stop it can be a bit ambiguous especially in a very small child - to quote from a blog I liked a lot when DS was younger: "...what exactly is the no to (breathing, walking this way, walking at all, swishing my dress as I do so, looking at that pebble, singing that song)? In the time it takes you to add something specific your child might not actually be stopping."
I know that sounds silly because it is obvious to us as adults what the problem behaviour is but in very young children they don't always know, and it usually is when they are very young that we insist on using "No" as a word to magically stop what they are doing. There is a thread every week asking when babies will understand it. They don't understand it - otherwise all languages would have the same word for no. We teach them the meaning of it by stopping them from doing something as we say it, but there are more descriptive words. Hot, Mummy's, yuck (dirty). You can get a more immediate and direct result by describing in one word what you want: Wait, gently, careful, look, show me, can I have it, drop it, over here, etc etc.
Does not mean you never say no but using another word as a first resort is not difficult to get into the habit of doing and it's more useful (IME).
As opposed to naughty, which I think I've literally used about three times ever: that hurts X, that makes a mess, it's too loud, it's annoying, it's a waste, it's dirty, it's rude. Not here, go there. Not this one, that one. Not like that, like this. Again giving instructions. Walk on this side, carry with two hands, play ball outside, inside voices, etc ad nauseum. I just don't find it a useful word or concept to declare an act to be naughty. I do understand the comparison to illegal activity but it's not fear of jail which stops me punching somebody in a pub, it's knowing that it is wrong to hurt other people.
If somebody else said no or naughty to my child I wouldn't mind but I choose to use other words myself.