even in my imagination I don’t have any interest in being “bad” and deserving of punishment. I suppose I just prefer the idea of the shrinkee being an innocent victim (or it’s a happy consensual thing).
Same! Shrinking (or exposure to/living with giants) as a punishment for a tiny’s misdeeds isn’t usually my cup of tea either. There are plenty of ways to punish or humiliate (in some cases, dispose of) someone without shrinking them. I daresay that relates to my association with tiny things to be protected and giant things to be the protector. An exception, if you could count it, is a Robin Hood type situation where actions aren’t necessarily motivated by villainy: “stealing from the rich to give to the poor kind” of thing.
In my mind, being shrunk or to be put into a diminutive position is something to be overcome, literally (for survival) and/or metaphorically (the situation representing fears, being a doormat, etc.). So I guess, in a way, it’s still a “punishment” by virtue of being who she is or what she’s done, except it’s not what would be considered “bad behaviour”. In this case, who she is someone undeserving of more of the bullshit that life has thrown at her, and she must realise how to overcome her flaws, take control or make do of the situation before it destroys her, physically or otherwise.