To clarify my earlier post:-
The way I read the OP's post, the pullout was being taken away for a single occurrence. If that reading was correct then I do not see that as inappropriate because the misdeed has a defined and temporary consequence and everyone can move on from it.
If, however, the pullout was taken away beyond just the one time then it is both excessive and inappropriate.
While I agree with you that the hat trick needed a consequence, I think taking away the pull-out is the inappropriate choice. A better consequence would be having him stay inside for recess so he experienced what the other child endured.
Pull-outs shouldn't be considered "rewards" or "treats" and shouldn't be used to discipline a child. Having said that, yes, I do suspend reading privileges at home when DS8 misbehaves.
