My opinion might be shit, because I'm no parent. That being said...
I grew up in a house with a parent who's affiliated with Child Protective Services. Other than some spankings early on in my life, I had a lot of "alternative" forms of punishment.
None of them worked.
Time out? - What exactly is keeping me in "time out?"
Stern talking to? - Whatever, go fuck yourself.
No dinner? - Good, your food tastes like shit anyway. (lie)
Luckily, I think myself and sibling(s) turned out okay, for whatever reason. I had respect for all authority figures except my own parents, and that's not something I could personally handle as a parent, if I had to guess.
I think most of it was tough love, and could have been warranted. Can't say for sure.
As for how this will shape his development, I'd like to believe that this means he will be courteous and respectful of those above him, but it's too tough to tell. There are so many insane social and outlying factors that go into shaping a persons' development.