Naughty Dog used Google SketchUp for Uncharted 2 development
geek.com
geek.com
I did some experiments in going directly from concept sketch to textured level geometry using photogrammetry software, some years ago.
Looks like Naughty Dog uses a similar workflow and asset pipeline.
That's been the typical argument I've heard from artists against using it in production.
When I say "in production", I mean to generate data that is read into a game engine (and thus needs to meet stringent constraints), as opposed to data that is used to generate non-simulation images (e.g. concept art).
Designers love it as they can get exactly what they want and artists love it because they do level iteration with high poly difficult to manipulate levels.
http://sketchupdate.blogspot.com/2011/02/art-and-design-of-u...
http://www.sketchupartists.org/spotlight/artists/robh-ruppel...