In my opinion, plastic hinges speak more of what CAESAR II CAN do rather than what a user SHOULD do.
We design systems so they do not collapse (i.e. our longitudinal stress due to sustained loads). A plastic hinge indicates such collapse.
The example you mention in the applicatin guide shows yielding due to thermal strain. Typically, an elastic evaluation (no yield) is emplyed here as it is conservative.
I see the use of this feature limit to "forensic" engineering rather than "design" engineering - that is, to evaluate what actually happened in the field, after it happens. If it yielded and you want to check the response, then try the pastic hinge.
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Dave Diehl