They were doing something like this when I joined in '96. The drill sergeants had to give us a speech saying that they weren't allowed to swear or to touch us (like hitting touch... don't go there) anymore. We also had to sign paperwork saying we wouldn't sue any of the drill sergeants if they did do anything like that.
Speaking directly as a recruit, it was very demotivating to me, but that wasn't the worst part of this pacification of Boot Camp. More importantly, it emboldened many of the bad recruits to get lippy with the drill sergeants, to which they're only reply was often, "Get some Article XV paperwork going on this kid."
Oooo... Real intimidating.