We try to teach our children to respect other people's property and shared spaces. So that means they need to clean up their stuff. We also try to live by the same rules we teach to our children. So that means we're not going to start trashing their stuff because they don't want to pick it up.
Cleaning up is a difficult logic puzzle for kids. It uses organizational skills that they either don't have yet, or are still developing. Based on my experiences, I would estimate that children under 5-7 need to do it with you, rather than by themselves, and children 7-12 (depending on inherent abilities) may still need specific (patient!) detailed instructions that help them see how to do it efficiently instead of it just being one huge, overwhelming mess. They need to know that you're on their side and you aren't just going to teach them to swim by throwing them into the deep end of the pool, so as to speak. My experiences are based on caring for six different children (two of them mine own) spanning the mentioned age ranges, as well as drawing from my own childhood. I'm a bit of a neatnik now but I had/have ADD and cleaning up an entire room (or house, as the case sometimes was) was not something I could force myself to focus on til completion until I was 12-14. My parents threatened to take things away, and I think did once, and it merely induced panic which didn't help me anyway. Kind of had the opposite effect as intended, actually.
I view punishment as "'us vs. them', trying to make your child's life suck in hopes they won't do dumb stuff anymore" and consequences as "'we're on your side', but letting them bear full responsibility for making dumb choices"-- but parenting comes in way before that, in being an engaged, proactive parent and teaching them to not do the dumb stuff in the first place.
Perhaps the two look the same in results-- either one could look like the kid getting grounded-- but it's a different mindset that the results come from and the "consequences" mindset is more respectful and less fear-driven, less reactionary, etc., imo. The point is to not let your parenting come from a retaliatory, reactionary place, but instead be empathetic, respectful, and calmly maintain appropriate boundaries.