American students are not lacking in self-esteem. Often, their self-esteem far exceeds their capabilities, as they have been coddled and rewarded since birth for every "accomplishement" great and small.
Writing names on the board is a practice as old as public school itself, it were truly so destructive, our society would have imploded 80 or 90 years ago.
And I myself am totally opposed to reward-based discipline. We have a generation of children who ask "what's in it for me" before they so much as get out of bed in the morning.
I highly recommend the book "Punished by Rewards" by Alfie Kohn, which gives solid evidence that reward based discipline is a failure in school, at home, and in the workplace. When people are bribed to do a task, they devalue that task ("This must be a real pain to do, if they have to give me a prize for doing it"). When children are bribed to behave, they do not learn the intrinsic value of being a good person. They do not learn that discpline, self-control, moral behavior and courtesy are their own rewards.
Writing a child's name on the board is about the most benign and non-confrontational punishment I can think of. If a teacher can't even do that, then we should just give up altogether and let the little darlings run wild.