I have always been of the opinion that you should work with full models when designing. I feel that computers have come far enough that server space/computer memory is no longer the issue it was when 3d modeling was in its infancy. I have some co-workers who feel that modeling should never be done with full models and that "dummy" files (simplified versions of the actual parts) should be used. I get the argument I suppose, but with advancements in shrinkwrap technology and computer technology why would anyone still use this form of modeling when you could be using the actual model???
Are they perhaps incapable of creating full models?
How much training using Shrinkwrap LOD have they had?
I should have added -
if the geometric features are not needed for manufacturing, assembly interferrence checks and such - then it might not be necessary to model these details. For example, we use cosmetic threads rather than cut threads as the convention for simplified threads in 2D views are standard and understood.