My rule of thumb is that if one drives it 200-250, he should hit from middle tee. It's to do with the course design, that approach shot should be played sometimes with short iron, sometimes with mid iron and sometimes with long irons. If one finds that he always hit long irons or woods to greens, or on the other extreme a bomb and a wedge that means they're playing from the wrong tees.
It's to do with the challenge that one should get from playing the course, the butterfly you get when hitting middle irons to greens with water on three sides. It's about giving yourself reasonable goals to shoot, instead of getting frustrated having to lay up all the times, or losing balls in water all the time.
I hit 260-270, with occassional bombs and occasinal duffs, and I play from middle tee. I like making pars and occassional birdies, and at most bogeys. But two of my friends however, hit slightly shorter, but they feel they needed the challenge from back tees, and shoot in the 90s, and sometimes 100s. So I tell them, dude, we (and by we, I meant you two) have no business hitting from back tees. And I creamed them everytime they "forced" me to hit from back tees.
It's also out of considerations for people behind you, if you play out of your supposed tees, you hold up people behind you.
Of course, one may hit short, but hit it like laser to the green, and make pars from all over the place, in that case, they should probably play from back tees. Jim Furyk is a short hitter, but obviously he plays from championship tees.