Getting this to work is difficult. In
order to benefit from the MVVM
pattern, you have to distribute code
in several places throughout the
layers of your application. You also
have to use esoteric programming
constructs like templates and lamba
expressions.
For a commonplace modal dialog box? You are certainly doing something wrong there - MVVM implementation doesn't have to be that complex.
Considering you are new to both MVVM and WPF, it is likely you are using suboptimal solutions everywhere and unnecessarily complicate things - at least I did so when I first went WPF. Make sure that the problem is really MVVM and not your implementation before giving up.
MVVM, MVC, Document-View, etc. is an old family of patterns.. There are drawbacks, but no fatal flaws of the kind you describe.