Punishment and appeasement are both short-term, reactive solutions as opposed to long-term, proactive solutions. Regardless of whether the parent or teacher chooses punishment or appeasement, the child misses countless opportunities to build competency in crucial life skills such as self-discipline, self-control, and conflict-resolution.
But because adults conceal their flaws, and at the same time insist on high standards of behavior for kids, a lot of kids grow up feeling they fall hopelessly short. They walk around feeling horribly evil for having used a swearword, while in fact most of the adults around them are doing much worse things.