How much is "too much" concerning nonjudicial punishments and corrective actions?

Due to the requirements imposed by the DoD, the Army, as well as the other branches of our armed services, has been tightening it's belt in many ways including the reduction of personnel. This is being accomplished in many ways; however, I would like to focus on the increasing impact punishments (meaning Article 15's, negative counselings, etc) have on soldiers' careers.

Utilizing counselings is an important part of soldier and leader development and helps identify weaknesses as well as strengths. That being said, when would physical correction be more appropriate and at what point do we decide the offense warrants more than physical labor? Also, should it always be followed with paperwork?

As a side note as to why I am presenting this question I would like to add a quote from Heinlein's "Starship Troopers". Although it is meant to address cruel and unusual punishment in regards to our current legal system, my mind has a strange way of relating the quote to my question.

"While a judge should be benevolent in purpose, his awards should cause the criminal to suffer, else there is no punishment - and pain is the basic mechanism built into us by millions of years of evolution which safeguards us by warning when something threatens our survival."