[Grammar] Some parents believe in being strict, but taken to extremes this can produce

[yi-ing]

What do bold words mean?

Some parents believe in being strict, but taken to extremes this can produce a too authoritarian atmosphere in the home, with the children being dominated and ruled by their parents.


I think taken to extreme mean: if being strict is taken to extremes (by parents)
With mean: who have

 

[Matthew Wai]

I think it should be 'taking this (being strict) to extremes', a gerund phrase.
'With the children being ...' means 'where the children are ...'.