we all be using this method?
NO! It really depends on your needs. BSP is ideally designed for Indoor Levels and its very good for solving occlusion and collision. However, there are other rendering techniques for Occlusion and Level Of Detail(LOD): Portals, Cubic Space Partitioning(for lack of better name), Mesh Switching, Mesh Blending.
BSP is whats known as a precalculated potential visible set (PVS). A list of the possibly visible sectors stored in every sector. BSP also manages the order in which polygons are rendered.
Cubic Space Partitioning determines PVS based on location. Unlike BSP it has no control over the order of polygons. Just imagine a single floor level map in which and invisible grid divides the map into small cubes. Each cube contains a list of polygons visible in any directions within that cube. When the player moves from one cube to another the old cube's polygons are hidden and the new cube's polygons are shown.
A Portal is just an object that defines a window in which an area can "see" another area. They serve as a viewport and unlike BSP or CSP they are performed realtime rather than preprocessed.
Level Of Detail is a rendering technique ideal for Outdoor Levels. The basic concept is that Meshes further from the camera require less detail (polygons) then closer ones. Thus, you increase a mesh's polygon count as it gets closer and decrease the polygon count as it gets further away. LOD can be achieved either by manipulating the polygons realtime or switching between meshes with hi-lo polygon count.
I'm personally in favor of using both CSP and Mesh Switching LOD which can be implemented in blitz rather easily.