No I certainly do not agree. A child of two knows what's right and wrong. There is no excuse, none whatsoever, for criminal behaviour: not background, not family, not economics. Right is right and wrong is wrong. Break the law and you get punished, it's simple. Remember the killers of Jamie Bulger would fall into this category.
Children know what they are doing is wrong but with the connivance of do gooders and the pc brigade they know they can get away with it. They know all their rights but none of their duties and responsibilities. They manipulate the system.
Punish them if they do wrong, not mollycoddle them.