The usefulness of rectification is that it helps correct geographic distortions it also convert image to a standard map coordinate system.
Give improved, map-like geometry to air photos, satellite images, and air video frames by removing their systematic distortions of distance, perspective, and other factors. Image rectification processes reduce image distortion so that your images can serve as accurate map bases. from:(http://www.microimages.com/getstart/rectify.htm)
pitfalls of image rectification:
1) very time consuming
2)when the accuracy of the map points are not well known
3)when the images lack clearly identifiable points to correspond to the maps.
other reference: http://en.wikipedia.org/wiki/Image_rectification
I have looked online for more reading reference so i could fully understand what is image rectification my answer is a combination of my readings and actual lab exercise experience.

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