I'm going to guess that no punishment could make him hate reading -- I think once that love of books gains a foothold, there is no stopping it.
However... I was a "late night" reader as a kid, and so were my kids. I bet if I tried to find all the flashlights hidden in their rooms I couldn't. My kids even have permission in the middle of the night to turn on the light to read a bit if they can't sleep. Not right after bedtime -- I expect them to GO to sleep. But for those "just woke up at 2 am and can't stop thinking about stuff" nights, we all do it. For us it is a "sleep hygiene" issue -- we really have to read before sleeping to stop our minds from working on all the other issues of the day. But it is true that a good book will keep us up late sometimes, too.
I think a couple of times I took the "problem" (meaning: really, really good) book away. Told them it would be there in the morning for them (did the same with the laptop when they were older). But they needed sleep. Doesn't stop them from getting something else off the shelf, but if it was just not wanting to stop on that one book it worked. And as a bedtime reader, I would find it a luxury to have a whole hour at bedtime to read, so extend that time and it might help (tuck him in half an hour earlier than you have been with his book).
It really hasn't done any harm that I can see to any of us. But I would not turn it into a "punishment battle". Reading too much is like... eating too many vegetables or something. And for some gifted kids, taking away books is like cutting off their oxygen. I just tried to be firm that while reading is a very great thing, sleeping is good for their physical health, and they needed to take care of that as well. And try to give them a lot of reading opportunities during the day, and a bit of slack for middle of the night wakefulness. But making this a battle of wills like your H is possibly doing is NOT a good idea.
