I absolutely use this phrase, but I would never use it in the contexts you're talking about. Nothing on the ACE list for sure (violence, abuse, lack of love, lack of basic needs, an alcoholic parent, etc.)
I'm more of a free-range parent, and I use it for things like:
-Sleep training
-Letting kids handle things like ordering a pizza, walking to the park by themselves, navigate the metro, etc.
-Timeouts/similar types of discipline
-Making kids do chores and contribute to the household
-Letting kids fail - not being willing to step in with a mean or unfair teacher, for example.
-Forcing kids to do things like play independently from a young age.
I don't think I used this exact phrase in my posts, but it's the kinda of thing I would say in response to hand wringing over "inappropriate" literature, like in this thread:
https://www.dcurbanmom.com/jforum/posts/list/976044.page