IMO.
Punishment is a good way to instill common sense into kids' heads.
When I was a kid, I'd be scared of my teacher and avoid getting in trouble because I would get slapped. Punishment and abuse are totally different...
In this case, it was also the parents fault for not teaching their kid common sense. I never played with a knife when I was younger. I knew it was dangerous. (I did nearly burned down my house, though, but that's another story, lol)