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It's not always easy to keep the information up to date. I have three domains of which I manage two directly with a registrar. These two have accurate whois information (I suppose this is important to ensure I can get the latest V1aggra offers). However, the other domain name is managed via my hosting provider and they are just unable to keep it up to date. I first have to change my address details on-line, then send them a letter or fax to confirm and the whois information is of course not updated (they don't even get it right on my invoice). If it's such a struggle to get the billing right, I honestly can't be bothered to insist on correct whois information as well. I would just switch to another provider, but their support and technical services are actually very good compared to other hosting providers I used before.
Another thing I find quite irritating is the Nominet privacy option which hides contact information. This feature is is actually only for 'non-trading individuals', however - quite often - people who hide their information want to sell something through their website. This option really should only be available for private websites.