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Eugine_Nier comments on Several Topics that May or May Not deserve their own Post - Less Wrong
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Keep in mind that unilaterally deviating from a Nash equilibrium doesn't work. Furthermore, even if you successfully convince other people to also deviate unless the new state is also a Nash equilibrium, you'll ultimately wind up loosing to the defectors. In any case, I tend to find the "modern" approaches are frequently much heavier on signalling than the traditional ones.
I don't really agree with the last point. Furthermore, the modern solution to misbehaving children appears to be to drug them with Prozac or something similar which almost certainly does more harm then spanking.
I agree that finding Nash equilibria is important to society, but I think there is great benefit, especially among LWers, to individuals who sacrifice status for values like honesty and truth. Creating ways for these to be Nash equilibria is the only way to make the world more rational, but not the only way to make oneself more rational.
Suggesting a specific alternative method for dealing with misbehaving children does not make the option you first presented better. Not being a parent or a developmental psychologist, I do not know what the best methods would be, but I do sincerely doubt that either spanking or Prozac are among them with rare exceptions.
It seems to me, especially with your specific comparison of Prozac versus spanking (in which you misinterpret my final sentence, which was intended to be a general statement about suffering not a specific statement about spanking), that you have specific political ideas wrapped up in this discussion, entirely separate from the factual issue of whether or not people are better off raised in a sexually repressive or permissive environment. I suspect that continuing this conversation will not be very productive.