My DD did it once when she was almost 2, used so many different color crayons on the wall. My mom was babysitting her at the time. We got mad at her, and she did not do it again.
My almost 3 year old DS dragged his pencil along the wall in several places. Short lines or ones that were not as noticeable. We got mad at him. We discovered another one elsewhere, but I cannot tell if it was there before we got mad at him or a new one. Overall he's a rule follower, doesn't touch the stuff he is not supposed to in the kitchen or elsewhere, so I am hoping it won't reoccur.
I know of someone who taped those huge brown rolling paper all along the basement wall, and told their 3 year old to feel free to draw on that paper (which to a 3 year old would look like her parents are letting her draw on their basement wall). So I don't think it's a good idea, as I don't think the 3 year old will learn it's only acceptable in her basement and not at preschool or at a friend's. To each their own.