Jesse: Steph, I've been livin' with those stupid pink bunnies for three years, why didn't you something sooner?
Stephanie: You didn't ask.

Michelle: Hey, where are the bunnies?
Jesse: The bunnies went bye-bye.
Michelle: But I loved those bunnies.

Someone looking closely can see that the writers - who might be thought to have no concept of child development - actually understood more than meets the eye. A child of neary 4 who never faces negative consequences would never obey very well at all long before this episode takes place; she'd be a holy terror all through season three. Yet, Michelle obeys D.J. perfectly when told to rake up the leaves she kicked over; just as she's obeyed teachers, Danny, and the others all through season 3. Michelle asks if she's in big trouble just from Danny's tone - she would never know that was possible if she hadn't heard it from someone else. It is normal, psychologically, for single parents to try too hard to be a friend, especially single dads. They forget that loving nurturer also disciplined. In many cases, an oldest sibling, usually a daughter, is the one to handle discipline. Given D.J.'s personality and Michelle's good behavior despite this problem overall in the sereis, the writers may have known more than people give them credit for. And as for that "first punishment" bit - well, Danny might never have let D.J. call it punishment, or perhaps it went from 1 minute per age timeout to 5 minutes in the corner. A 67& increase is huge for a child that age.