Rahul, your question is well placed but your conclusions are a bit abrupt. Just like you, SAP too sells its wares based on some purported benefits depending on who the client is, what industry, what managerial maturity and what money they have on the table. When it comes to ERP apps, It is generally very hard to sell something as a 'better' alternative given there are just about too many options (and too many non SAP software that claim to be better than everyone else on 'most' dimensions) to solve the same 'fundamental' problem. It will pay if you stick to the MAIN problem and not the paraphernalia that is more a by product of some MAIN underlying problem.
CTM is strictly speaking not a netting-planning tool. It is a noble program to match supplies to demand. SAP calls it first feasible solution. This means CTM is a not a fully (cost) optimal supply planning solution but it does consider constraints of capacity (finiteness) if latter is deemed very important by your client. CTM solves the problem (of assigning supplies to demand) sequentially which means it works through the list of demands one by one across the network if you so wish. Well it makes sense only if done across the network and at multiple levels!!
Another way to gauge the fitment of a solution is by making note of the frequency of key words used by the client, with or without a complete knowledge. If the word "priority" or 'customer priority' or "allocation" or "reservation" implying the dire need for customer service in the event of limited availability of products, there may be a case for CTM as a viable solution that at least solves their current problem.
Another way to gauge can be based on how inward (supply side) or outward looking (demand side) does the client sound! Some firms may care a damn about how and where the stuff is made or may be their supply side has no serious care takers. The only thing they love may be the idea of delighting customers at ANY cost but some more than others. CTM can fit in well here. Similarly if your client's supply chain has very very large number of end customers (in the supply chain model) e.g. order of magnitude higher than factories and warehouses then there arises a natural need for prioritization of all kinds. So CTM may have a prima facie case.
Historically speaking firms with expensive finished products in discrete industries like consumer electronics, semi-conductors have embraced CTM and benefitted from it but that said there are firms in Agri business and chemicals too where CTM is being used.
I do not have any implementation experience of CTM but have heard people taking about it. esp. those masquerading as supply chain experts on just about everything. I am not one of those. I advise you to trust YOUR OWN wisdom when it comes to open ended questions likes these.