Right, I think it's a harmless belief when loosely interpreted.
It has potential to be a useful model IF we went back to the origins, that is the work done by disability activists that you can't just consider a bodily malfunction in isolation - that access to services and other resources are a social issue, and the way a person is treated and their place in society will impact on the way the illness or disability affects them, ie the original "provide wheelchair ramps" theory.
The usefulness of it has been twisted out of all recognition however, mostly to shore up the ideology that says "no such thing as society" and that it is up to an individual to will themselves out of their incapacity by choosing better thought patterns and more suitable behaviours (and if they don't, then use it against them as proof of their ingratitude, unwillingness to recover and derangement)
For us an interpretation that could work would be something like:
1) the recognition of the organic disease and the recognition that there are no obvious simple drug treatments as yet, though some comorbid conditions can sometimes be tackled (bio)
2) Stop demonising the patient population. Educate GPs and other healthcare providers as to the nature of the illness and the needs of the patients. Make sure services such as pain management, support for day to day activities, welfare etc are available. Spend some money on research. Take the ME clinics out of mental hospitals and away from the psychs. Draw on the expertise we do have from the patient population and the handful of good practitioners (social)
3) ... um ... got nothing here ... (psycho (lol))