Wait what, you have never been grounded?
My parents were authoritative. I have definitely been grounded before, but when I did, it was for a good reason. They never grounded me for stupid things. They were not unnecessarily strict, but they were strict on the things they should have been. I realize that is everyone's opinion on what should and should not be punishable, but I think they were agreeable with society for the most part. They grounded me for things that could turn into a bad habit that would serve me wrong in the future. I snuck out one time at 2 in the morning at my friends house and we got caught by hospital security (my friend lived near a hospital). I was grounded then, which is understandable, because I was in 6th or 7th grade and I could end up getting hurt out late at that time. I am from St. Louis, Missouri and it's not exactly known for its safety.
There is something to be said about permissive parenting. The book and other publications say authoritative parenting style is best, but the fact is every child is different. While authoritative may be the best statistically, it doesn't mean it's the best for your child.
This is exactly how my relationship with my parents is! I thought I'd call that authoritative, but I'm thinking its more on the permissive side, seeing as I have never been grounded either. And I have an older sibling who turned out much like your younger sibling. But as for me, I guess it is the same deal with trust and not willing to break it. Some times I wonder if they trusted me a little too much though. I personally think we can all turn out just fine no matter how we are raised. Some of us just may change the way we raise out own children based on what we did and didn't like about our own upbringing. I know that's what my parents did. They had a strict upbringing and My and my brother had a not so strict childhood. No matter how you are brought up, you will be how you will be. Even two siblings can turn out different with the same upbringing. I like to say there are different strokes for different folks, sometimes certain ways work and sometimes they don't. Sometimes it's up to trial and error to find the right technique.