I'm continuing to struggle with the MVVM pattern and, in attempting to create a practical design for a small/medium project, have run into a number of challenges. One of these challenges is figuring out how to get the benefits of decoupling with this pattern without creating a lot of repetitive, hard-to-maintain code.

My current strategy has been to create 'rich' Model classes. They are fully aware that they will be consumed by an MVVM pattern and implement INotifyPropertyChanged, allow their collections to be observed and remain cognizant that they may always be under observation. My ViewModel classes tend to be thin, only exposing properties when data actually needs to be transformed, with the bulk of their code being RelayCommand handlers. Views happily bind to either ViewModels or Models directly, depending on whether any data transformation is required. I use AOP (via Postsharp) to ease the pain of INotifyPropertyChanged, making it easy to make all of my Model classes 'rich' in this way.

Are there significant disadvantages to using this approach? Can I assume that the ViewModel and View are so tightly coupled that if I need new data transformation for the View, I can simply add it to the ViewModel as needed?