Lanky... couldn't agree more. One of the things I observed during the 1980s adn 1990s was that the fighters who actually did a lot of non-contact became very, very good full-contact fighters - because they had learned very good control. Not all can make this transition, but once they didi ...whew!
I also agree that leading a karateka to insight and control should definitely be done without punishment. If the right attitudes are being cultivated, then he/she will "punish" themselves for carelessness and lack of control. I only think the Sensei should become involved in "punishment" if it comes down to refusal to learn or bullying. But ignoring it sends a wrong message to everybody.