You might get more of a response if you post again on the "Teaching Unmotivated Students" thread (the one with the flashing bell and a zillion views, about ten threads or so below your one here).
I do appreciate these kind of problems exist (I've taught in schools where the WHOLE SCHOOL, students AND staff, treated the foreign teachers as something as a joke, almost a nuisance, they'd practically cordoned off the "serious" grammar classes, which the Japanese staff taught by themselves, from the "conversation" classes, which I had to team-teach with Japanese teachers who mostly didn't ever appear to really want to be there!), but I've never been one to take much of an interest in "Classroom Management/Discipline" etc.
I'm not saying that teachers who (have to?) take these kind of measures never get round to having enjoyable classes, but I can't help but wonder how they would react if they walked into that "ideal" classroom - would they be at a loss as to what to do if there were no students to stare down or ballbust? No punishments to inflict?
What I'm trying to say is, immediately treating these kids like the brats they are acting like is definitely going to make the current class a drag, for you but especially for them, and there is no guarantee that it will improve the situation in the long run (I rather fear that it will just turn into a "battle of wills").
There must be a few kids in the class who respond to or seem to like you...try to take them "under your wing" and give them the attention they deserve as you slowly nudge the whole class to at least look at what you've prepared. If you spend time on thinking of how to present the instructions efficiently it might also help (you could even print them in Chinese on the handouts so everyone has no excuse for not getting cracking - "I don't know what to do" - remember, the instructions/ obediently listening to you give the instructions and following you to the letter, are not actually the focus of the class, the language WITHIN the activity should be the focus!).
Of course, it is difficult if very few are giving you the time of day; and it can get more difficult still when the "disruptive" ones start taking an interest, and distracting you (and everyone else) from the tasks at hand by showing how "witty" and clever they are. You might not like to give them the attention and kudos, but I think it is a little harsh to deny them totally (and who knows how much attention or not they are getting at home from their parents etc).
So, if you can accept that teachers are not Gods, and that they are not ultimately morally superior to the kids in their classes, you might end up convincing your charges that you care not only about English, but also about them too.
I took a patient and, for some disciplinarians, perhaps a rather weak or lax approach in my classes at that school, so I didn't ever really totally overcome the problems (particularly with the more lackadaisical older adolescent types), but with more than a few classes who really seemed to HATE it at the beginning, I noticed they were lightening up and sometimes smiling, laughing even with (at?) me, and with their "friends" during activities (which they actually started completing!) as the term progressed (I even drew comments about the changes in attitude from the Japanese teachers).
It seemed to me that my colleagues, who were more inclined to discipline their classes, were still having a harder time of it (or feeling that they were) than I was by the time I resigned.

(I didn't resign because of the students, but because of the haughty attitude of the Japanese teachers, and the general neglect of, and lack of interest in, the conversation programme by the school management).
Ultimately, though, I guess you have "laid your cards on the table", "shown your hand" etc, and now that they "know" you are a or want to be a disciplinarian, perhaps that it the way you are going to need to continue playing it.

Let's hope some people with more experience in ballbusting or staring mad rabid hyenas down (and perhaps even shooting them dead) reply soon!
P.S. I suppose that having such large classes doesn't help, you will probably need to take a more active role than I did (in classes of up to 30) and become "the center of attention" if for no other reason than to get people working.