YankeeJim:
You have to watch how you view what the caddie suggests. If you take it as gospel you're going to be in trouble BUT the caddie can make your decision easier if you understand how clubs are picked by it.
You will always be handed a club longer than the distance you're facing. It could be as little as 1 yard that will cause this. An R11 pw goes 125 yards. Land at 126 and you'll be getting the 135 even though you'd want the pw. Even 122-124 might get the 135. Inside 100 yards the caddie is clueless and wind doesn't factor in at all.
An obviously shorter club than what you would think usually means warning-take more club at your own risk. Oakmont traps are a good example of this. Take anything higher than what the caddie suggests and you'll get in trouble.
I don't look at the caddie instinctively. I see the yardage I have when the shot stops and am already knowing what club I want to hit. If I land in rough I use the caddie as a base and add 1 club for 30-40 and 2 clubs choked for 40-50. There are ways to use the caddie but it's your decision in the end so take what it says with a grain of salt.
For the most part I select all my clubs all the time as a pre-shot routine but Jim is exactly right. One other thing I've noticed is the caddie suggests clubs that appear to be too much club but in fact, a punch shot should/could be hit with the club selected by the caddie. Sometimes we're suggested the correct club but we still have to decide what to do with it.
Also, the caddie is suggesting clubs based on the free ball. Once you mix in the top level GB's that go much farther, the caddie appears more incorrect.