I attend an LCMS (Lutheran Church Missouri Synod) church, and while I don't think they take a stand on corporal punishment, their publishing house prints a series of pamphlets for new parents at different stages of their child's life. The infant pamphlet promotes responsive parenting--meeting needs as they arise. The toddler pamphlet encourages parents to see the "no" stage as a sign of developing independence, not as a sinful afront to authority. I think these are hopeful signs.
Of course, the parenting climate will vary from congregation to congregation. Babies are welcome in our services, and our pastor suggests that families with small children sit up front so the kids can see what is going on.