With DS1 I never had to use anything like this. He was very reasonable and would stops, shouting, crying,whatever and listen to me and we were able to come to some sort of compromise.
Ds2 was a huge shock to the system as none of the methods I had sucessfully employed with DS1 have ever had any affect on DS2.
DS2 is very spirited and if he is caught up in bad behaviour, ie physically hurting his siblings or action that is a danger to himself, there is no way he is open to negotiation. I started by telling him that he must stop hitting, kicking X and if he did it again he would go in the naughty corner.
He tested this to the limit when I first introduced it but that is his way of reacting to any sort of rule, test, test, test, test.
After one day he knew that I meant it and I only have to say Stop or you'll go in the naughty corner and he does.
On days when he has found his emotions particularly difficult to deal he has deliberately pushed so he was put in the naughty corner. This has helped me recognise occasions when he needs me to take him out of the situation.
I think for some parents it is is very useful tool for dealing with unwanted/dangerous behaviour but it has to be used consistently, without shouting, the reasons for being removed from the situation explained for it to have any positive effect.
I think it is easy to say I would never do that (me prior to DS2!!) but when the reality is that you live with a child who's emotions and reactions are 'more' than the average child then you need to be able to reinforce with a method that is 'more' than distraction, negotiation etc.