Hi Matt,
I use templates all the time. I probably have close to 200 or so for every phase of the development( ie. business requrements, functional specification, feature specification, architecual plan, end-of-life plan, etc). I like using templates as they let the author of a document know what needs to be in the document. In addition, templates allow for standardization of documents. Nothing worse than having two web projects, for example, with two completely different types of functional specifications (sections missing from one that's included in another and vice-versa).
That being said, a template is just a template and it's just a starting point. You have to customize a template for you own specific needs. Every organization/project is different. You tweak templates until the template becomes standard. That's what I used to do, so every new web/windows project has a basic template(in my case a set of templates) which outlines the sections which are required.
s there such thing as a template that covers all technical issues AND aids the developer without bloating the document with lots of vague ambiguous sections...
I doubt this, as I mentioned previously, templates need to be customized according to your needs and every organization/project is different.
[Edit] One thing I forgot to mention is the use of templates is not for everyone. I have found that the larger the organization, the more they want to standardize their internal processes, hence the use of templates. If your a small shop or a single developer, while templates may be beneficial, someone has to manage and update those templates.