Sure, we have rules and boundaries with our toddler. For instance, we've made it very clear she's to not hit her 4 month old sister. We've made it very clear that when she's nursing, when her mother says "enough", that's enough. We've made it clear that she's not to flip over the empty clothes basket and start jumping on top of it, as she's fallen repeatedly.
What happens when she breaks one of these rules? We tell her (attempt, sometimes it's hard not to raise voices) why she shouldn't do it again. That's it, we don't hit her, we don't give her a time out; and it works. Every damn morning she would take my cup of water next to my bed and spill it on the carpet. She did it for nearly a month straight, each time telling her not to do that, it makes the carpet wet; until eventually one morning she looked at the cup and said, "Don't drop the cup of water on the carpet." in her 2 yr old voice and hasn't since. Most parents would spank/hit/give timeouts; often times ineffective and dangerous.
She does have a structured life. The point I differ is how we deal with undesirable behavior.
There's a big difference between being neglectful, and regarding a child's free will and preferences as equal to our own (within reason, a childs free will to run out into a street is an obvious limitation). But if my kid won't sit down at the dinner table and eat her broccoli, I'm not going to sit there "YOU MUST EAT THIS! OR ELSE!" like most parents do. I'm going to let her eat what she wants, and tell her why it's important to eat broccoli, and even role play with her to get the point across. This same philosophy is consistent across many other situations and ages.
So what really results in shit-head kids (which, they aren't really shitheads, their behavior is a direct reflection of who raised them) is either (a) neglectful parents who don't give a fuck what they do on one end of the spectrum, or (b) authoritarian parents who, instead of using reasoning and all the other positive associations we use with others, hit them, lock them in a room, stick them in a corner, or steal property (and yeah, while you bought it for them, let's get real; they view it as their own).
Edit: And yeah, what some here will say "REASON with my child?!? You're nuts! I can't reason with them"; but that's almost always because they've never been reasoned with as well. If you want to reason with your child, you start from a very early age, less than 1 even, and you reason with them. Which is what I'm trying to say here, you reason with your friends, you should reason with your child. If your child's relationship with you very early on consisted of being hit, given timeouts, or property was stolen, that's not reason. So it's no wonder peoples children won't reason with them, they weren't reasoned with either.