Ah, two year olds. Gotta love em!
One thought I have to throw out there is that time out doesn't have to be a "negative". It just has to help in correcting the behavior. My DD doesn't always mind being in time out either. She'll sing or laugh. It can be really irritating for me. Her behavior can really get me mad at times. And she just moves on like it's no big deal. But my ultimate goal isn't to "punish" her for doing the stuff that 2 year olds do. I want to "teach" her to behave properly. Time outs give her a chance to calm down and to get to a place where she's more receptive to what I have to say.
But I do try to use alternative consequences whenever I can think of appropriate ones. If she makes a mess of some sort I have her help clean it up to the best of her ability. I take away privelages or choices. Like she's allowed to have a turn brushing her own teeth only if she cooperates while I brush her teeth. I use a couple of variations on the time out theme. For example, she's supposed to clear her place after a meal. If she chooses not to do it, she stands on the kitchen rug until she's ready to comply. Or if she's not sharing with her brothers while I'm cooking, she might have to stay in the kitchen with me.
And I do think it's just as important (maybe more important) to give positive consequences for good behavior. I really need to do this more myself actually. I keep a bin a little treats (candy or silly little toys) to hand out if she's being good. I give lots of high fives or I'll swing her around in my arms when she does stuff I'd like to see more of. I praise specific things she does to DH when he comes home or to her grandmothers (so that she can hear).
Best of luck!!!
