Wow!
I've certainly seemed to have got a heated debate going. Many thanks to everybody for their comments and feedback.
As I see it, the biggest problem at the moment is that BIM is the latest buzzword with clients and they see it as a means all and ends all to solve all of their building project problems without any real understanding about what they actually want from BIM. The only clients that I have had pushing for the use of BIM are mechanical engineers within our local authority, and this is purely to do with clash detection. It is my opinion that in this situation a simple 3D "block" geometry model would be accurate enough for the purposes of checking for this.
The misconception that I believe the client makes, and this even goes back to the transition from manual drawing boards to 2D CAD, was that "if the work is done on a computer it must be right". The BIM 3D model is the next stage on and they are falling into the same mistake with this, but forgetting the old adage "if you put crap in you get crap out".