I strongly disagree with the concept that the Model should not implement the INOtifypropertyChange. This interface is not UI specific! It simply informs of a change. Indeed WPF heavily uses this to identify changes but doesn't mean it is a UI interface.
I would compare it to the following comment "A tyre is a car accessory". sure it is, but bykes, buses, etc also use it. In summary do not relate the interface to a UI thing.
having said that, it doesn't necessary means I do belive in the Model provinding notifications. Inf act as a rule of thumb, the model should not implement this interface, unless it is necessary. In most cases where no server data is pushed to the client app, the model can be stale. But if listening to financial market data, then i do not see why the model cannot implement the interface. As an example, what if I have a non ui logic such as a service that if receives a Bid or Ask price for a giving value it issues an alert - through an email - or places an order then this could be a possible clean solution.
However, tehre are different ways of achieving things but i would always argue in favour of simplicity and avoid redundancy.
What is better? Defining events on a collection or property changes on the view-model and propagate it to the model or have the view intrinsically update the model (throught the View-Model)?
Bottom line whenever you see someone claiming that "you can't do this or that" it is as sign they do not know what they are talking about.
It really depends on your case, and in fact MVVM is a framework with lots of issues and I am yet to see a commom implementation of MVVM accross the board.
I wish I had more time to explain many flavours of MVVM and some solutions to commom problems - mostly provided by other developers - but I guess I will have to do it another time.