At the risk of sounding an old git, "When I were lad and all that stuff".
EDIT Beaten to it by Homealone 
There used to be a dozen or so of us hang around all from a council estate all the families on incomes that these days would be classed as below the poverty line, disadvantaged etc all the nice polite ways of saying that we had sweet FA. We had no "facilities" available to us other than the street corners we used to hang around on, but we never used to intimidate folks, if someone was walking along the path we would get out of the way for them.
A lot of excuses are sprouted about no facilities, poor parenting, abused kids etc. complete rubbish, its about attitude. A great majority of the kids around here these days have a bad attitude, they think that everything should be handed to them on a plate and when they don't get it they lash out.
Some one I know has got three lads aged 15, 16, and 17 the oldest and the youngest are lovely kids the middle one is a right thug, Why? he's not from some inner city sink estate, if it was dodgy parenting why is it just him?
IMHO its the crowd of other kids he hangs around with the ones that egg him on to steal from the local Tescos, the same ones that join him in harassing old ladies. They do it to make themselves feel important but most of all they do it because they know they can get away with it.
The plans being discussed here or bringing back floggings might not be the best way to deal with the problem but if either were brought in around my way they'd get the support of most of my neighbours. People are sick and tired of gangs of youths running around spraying graffiti smashing up cars, intimidating folks and everything else they get upto because they're bored.