This term "DWG Fidelity" used in conversation lately.
Also, this scenario appears to be a rising trend...
Electronic deliverables for a project need to be in DWG.
The project is started in DGN format. At or near the end of the project, the project files are converted to DWG. Some translation issues show up. Now with limited time, you scramble to correct these issues to meet your deadlines.
DWG workmode is the perfect solution for this.
To be clear, the DWG format is not the same as DGN format.
Once that can be said without debate, the purpose of DWG Workmode starts to sink in.
It has been debated that DWG workmode is restrictive. It may seem that way depending on how it is viewed. Care should be taken on the outset of any project to make the format change from DGN to DWG as seamless as possible. You could set standards for the translation settings and that will probably work well. However these are settings for translation and may not be the best solution to handle multiple (different) situations across multiple files. This solution also benefits from having a good understanding of both formats. However, this is typically not always the case.
The best solution is to totally avoid the need to "translate" things that are not supported in DWG format. DWG workmode will stop you from using unsupported workflows up front instead of piling up potential surprises that may catch you off guard later (when you have less time to deal with them).
For more information, check the help documentation on DWG workmode.
http://docs.bentley.com/en/MicroStation/ustnhelp455.html
Help > Contents > Setting up Projects > Using DWG and other file formats > Working with DWG data in MicroStation > Working in DWG Workmode.
Be sure to take a look at the section "MicroStation functions in DWG Workmode" which covers what features in MicroStation are disabled or if there is a change in behavior while in DWG Workmode.