A.J.
Think of it this way: A very valuable part of his maturity and exploration INCLUDES things that are NOT allowed and learning that you ARE in charge. You are in charge, arent' you? Why keep it a secret? Many people take the "let them explore and learn" thing to the extreme that makes it sound like you can't direct your child when you need to.
He can play dress up all day long if he wants, but when you need to throw some clothes on him or help him, he needs to learn not to throw a fit or resist. It's also a great age to teach "no" to mom and dad is not OK before he starts to dictate the household (believe it, it happens).
He can carry and balance and hold things all day long, but when he has something you don't want to be spilled, he needs to let you take it away and not throw a fit (or whatever he's doing that's leading you to believe you can't take the stuff away).
He can have fun choices all day long, but when it's time for bed, it's time for bed and/or other things you decide are "just life and he needs to learn it".
Don't teach him at this tender young age that he has choices about EVERYTHING, because no one has choices about everything. The sooner he learns that, the easier it will be.
We used early, clear and firm discipline for the precise PURPOSE of allowing our kids early freedom. Now, at 5, 3 and 2, we never have to hover, and hardly ever have to battle. They listen when they need to, and we give them tons of freedom in exchange knowing they behave well and are confident and secure. Do not fall into the trap of believing, "If I ever step in and take charge I am squashing him" Au Contraire! You're giving him boundaries, knowledge and strength! If you DON'T step in and be in charge, he'll need you to ride him much harder later. This is the perfect age to stave off terrible twos if you're firm, and let him EARN his increased freedom as he learns thereafter rather than having to get firmer as his behavior gets worse.