I don't have any issues with DS2 staying still for time out, it's only for two minutes and he's normally bawling his eyes out whilst he's there.

Once the two minutes is up we have a cuddle and talk about why he went to time out and he normally behaves himself for the rest of the day. He's a pretty switched on little kid and totally understands though.

I don't agree with taking things away at that age, I don't believe it's a suitable discipline action for this age group, at least it's not for my DS. I definitely wouldn't be taking any security / comfort toys or blankets away, just like I won't do time out in his room because I want this to be his happy place, not associated with punishment at all.