I think one of the problems in using time out with toddlers is that it is like being punished for something you didn't know in many cases. This is the time when they are learning what is right and what is wrong and what the limits are. When they make a "mistake" it is just as easy to address it and tell them what they did wrong, what they should have done and then make it right. Then just move on and let it go. Not making an issue out of it just using it as a teaching moment. And some kids will need several repeat lessons before they get it.

When I give a time out it is for repeatedly doing the same thing and as mentioned above it is more often than not a child that is just having a bad day for one reason or another and not in the mood to be part of the group. A rest on the couch and life can start over.