I'm completely opposed to time-outs. I didn't grow up with them (or any other form of punishment) so I know they are not necessary. The "naughty corner" was something horrible and scary they had in the old days, like having to swallow a lunch box lid full of cod liver oil if you had forgotten to bring your spoon to school, or spanking (which has been illegal in Norway for many years).
Unfortunately time-outs are becoming more common in Norwegian homes now, due to nanny TV programs imported from the US and UK.

But kindergartens and schools are not allowed to use time-outs in my town. In "GD circles" in Norway time-outs are not considered GD.
When my eldest was little, around four years old, I read a parenting book that advocated time-outs, and I tried using them. Never again! She was really, really hurt and humiliated, and it didn't help the situation one bit - it only moved the focus away from what was currently the issue and over to the humiliation and hurt she felt from being excluded and pushed away from me (not literally speaking, I didn't push her, I carried her to her room and closed the door). After this had happened a few times she said one day: "Mummy, do you know what? Sometimes it almost feels like you don't love me anymore." She still remembers it.

It didn't feel like a useful and appropriate thing to do even to me, I just felt completely defeated and didn't know what to do. I never tried it with my two boys.
I have seen other parents (in the UK) use time-outs where they force the child to sit on a chair for some minutes, and from the child's reaction it was obvious to me that this is not right. They cry "I'm sorry, I'm sorry, I won't do it again, I didn't mean it" while being carried to the chair, obviously genuinely fearing the humiliation and exclusion, even if they know that the parent is going to be sitting only a couple of meters away from them.
I can see that using time-outs is one step better than hitting the child, which is the alternative in many families in the US and UK, I suppose. But it's still punishment, humiliation, exclusion, and disrespect.
As for the situations you describe:
Quote:
Originally Posted by momma_unlimited 
he disregards instructions (getting too close to woodstove, trying to touch woodstove tools, trying to stick parts of his body into the toilet, refusing to have a poopy diaper changed, etc) or throws himself on the floor, arches his back, and screeches like a banshee
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16 months old is to young to expect him to really follow instructions on a regular basis.
Too close to the woodstove: Block his access with something, I would have used an overturned chair. If he gets too close, I would move him away and distract him with a toy.
Woodstove tools: I would put them somewhere out of his reach, along with the toilet brush and my camera.
Sticking body parts in the toilet: Lift him away, distract.
Refusing to change a poopy diaper: I would just change the diaper. It's not optional, as my youngest have so sensitive skin that he gets a rash unless it's changed immediately.
Throwing himself on the floor, arcing his back, etc.: This is behaviour that has to be expected from a child this age. On his way to developing self-determination and independance he is experiencing a lot of frustration and strong emotions that he doesn't yet have the maturity to handle by himself. I would comfort him if possible, be available and understanding. He needs my help to learn how to go trough these strong emotions, understand them, knowing that he is loved and accepted no matter what, so that he can learn to accept his anger and frustration and eventually express them in a different way, with words.
As for whether time-outs "work" or not, I'm suspecting that putting him in the playpen works for you right now BECAUSE he is too young to understand. He is being moved away from the situation and distracted. I think you would get a different response from him in a couple of years when he is old enough to understand that he is being punished.