That's not a bad assessment, Terri. I would say that Basket One is for times when you feel getting compliance is worth the meltdown that will ensue. Dr. Greene recommends using Basket One only when safety is the issue. It may not have to be life-threatening but could still result in harm or injury of some kind for the child or for others.

Basket Two is for negotiated solutions to behaviors, working with the child to help them learn give and take and get them to participate in finding a solution to the problem that will work for all concerned. This takes skill and practice, but it is invaluable for the child to learn that problems don't have to be solved through power struggles and steers them away from all out fights and meltdowns.

Basket Three is, as Terri said, for behaviors that aren't worth making an issue of. With our kids, we just have to let go some things.
JoAnn, mom to Hilary 19, Bipolar and Diabetic, currently on Lamictal, Seroquel, Lithium, Clonopin, and Insulin