"But no let's lock them in a room or steal their property."

The issue here is approaches to misbehaviour and whether force, including hitting, is a suitable response. 

You have put a spin on two common and effective responses. A "time out" provides time for a bit of reflection and maybe a much-needed nap. You view it as forcible confinement. In the adult world (and I often reminded our students of this) some degree of confinement is almost a certainty for most offences: if you or I threaten, steal, damage property, etc the police will be summoned and we will soon find ourselves in the back of a cruiser.

Removing a cell phone from a kid who's still texting at 2 AM on a school night is not theft, it's the logical consequence imposed by a parent who knows that their kid needs an education a lot more than he needs an addiction to electronic gadgets. In the adult world, if you or I are liable for damages because of our irresponsible behaviour, we lose stuff: money and often much more.