xaml Data Binding Binding to a Collection of Objects with INotifyPropertyChanged and INotifyCollectionChanged

Example

Let's assume you have a ListView wich is supposed to display every User object listed under the Users Property of the ViewModel where Properties of the User object can get updated programatically.

<ListView ItemsSource="{Binding Path=Users}" >
    <ListView.ItemTemplate>
        <DataTemplate DataType="{x:Type models:User}">
            <StackPanel Orientation="Horizontal">
                <TextBlock Margin="5,3,15,3" 
                         Text="{Binding Id, Mode=OneWay}" />
                <TextBox Width="200"
                         Text="{Binding Name, Mode=TwoWay, UpdateSourceTrigger=PropertyChanged, Delay=450}"/>
            </StackPanel>
        </DataTemplate>
    </ListView.ItemTemplate>
</ListView>

Despite for INotifyPropertyChanged beeing implemented correctly for the User object

public class User : INotifyPropertyChanged
{
    public event PropertyChangedEventHandler PropertyChanged;

    private int _id;
    private string _name;

    public int Id
    {
        get { return _id; }
        private set
        {
            if (_id == value) return;
            _id = value;
            NotifyPropertyChanged();
        }
    }
    public string Name
    {
        get { return _name; }
        set
        {
            if (_name == value) return;
            _name = value;
            NotifyPropertyChanged();
        }
    }

    public User(int id, string name)
    {
        Id = id;
        Name = name;
    }

    private void NotifyPropertyChanged([CallerMemberName] string propertyName = null)
    {
        PropertyChanged?.Invoke(this, new PropertyChangedEventArgs(propertyName));
    }
}

and for your ViewModel object

public sealed class MainWindowViewModel : INotifyPropertyChanged
{
    public event PropertyChangedEventHandler PropertyChanged;

    private List<User> _users;
    public List<User> Users
    {
        get { return _users; }
        set
        {
            if (_users == value) return;
            _users = value;
            NotifyPropertyChanged();
        }
    }
    public MainWindowViewModel()
    {
        Users = new List<User> {new User(1, "John Doe"), new User(2, "Jane Doe"), new User(3, "Foo Bar")};
    }

    private void NotifyPropertyChanged([CallerMemberName] string propertyName = null)
    {
        PropertyChanged?.Invoke(this, new PropertyChangedEventArgs(propertyName));
    }
}

your UI wont update, if a change to a User is made programmatically.

This is simply because you have only set INotifyPropertyChanged on the Instance of the List itself. Only if you completely re-instantiate the List if one property of an Element changes your UI will update.

// DO NOT DO THIS
User[] userCache = Users.ToArray();
Users = new List<User>(userCache);

This however is very tiresome and unbelievably bad for performance.
If you have a List of 100'000 Elements showing both the ID and Name of the User, there will be 200'000 DataBindings in place wich each have to be re-created. This results in noticable Lag to the User whenever a change is made to anything.

To partly solve this issue, you can use System.ComponentModel.ObservableCollection<T> instead of List<T>:

private ObservableCollection<User> _users;
public ObservableCollection<User> Users
{
    get { return _users; }
    set
    {
        if (_users == value) return;
        _users = value;
        NotifyPropertyChanged();
    }
}

The ObservableCollection provides us with the CollectionChangedEvent and implements INotifyPropertyChanged itself. According to MSDN the Event will rise, "[..]when an item is added, removed, changed, moved, or the entire list is refreshed".
You will however quickly come to realize that with .NET 4.5.2 and prior, the ObservableCollection will not raise a CollectionChanged Event if a Property of an Element in the Collection Changes as discussed here.

Following this solution we can simply implement our own TrulyObservableCollection<T> without the INotifyPropertyChanged constraint for T having everything we need and exposing wether T implements INotifyPropertyChanged or not:

/*
 * Original Class by Simon @StackOverflow http://stackoverflow.com/a/5256827/3766034
 * Removal of the INPC-Constraint by Jirajha @StackOverflow 
 * according to to suggestion of nikeee @StackOverflow http://stackoverflow.com/a/10718451/3766034
 */
public sealed class TrulyObservableCollection<T> : ObservableCollection<T>
{
    private readonly bool _inpcHookup;
    public bool NotifyPropertyChangedHookup => _inpcHookup;

    public TrulyObservableCollection()
    {
        CollectionChanged += TrulyObservableCollectionChanged;
        _inpcHookup = typeof(INotifyPropertyChanged).GetTypeInfo().IsAssignableFrom(typeof(T));
    }
    public TrulyObservableCollection(IEnumerable<T> items) : this()
    {
        foreach (var item in items)
        {
            this.Add(item);
        }
    }

    private void TrulyObservableCollectionChanged(object sender, NotifyCollectionChangedEventArgs e)
    {
        if (NotifyPropertyChangedHookup && e.NewItems != null && e.NewItems.Count > 0)
        {
            foreach (INotifyPropertyChanged item in e.NewItems)
            {
                item.PropertyChanged += ItemPropertyChanged;
            }
        }
        if (NotifyPropertyChangedHookup && e.OldItems != null && e.OldItems.Count > 0)
        {
            foreach (INotifyPropertyChanged item in e.OldItems)
            {
                item.PropertyChanged -= ItemPropertyChanged;
            }
        }
    }
    private void ItemPropertyChanged(object sender, PropertyChangedEventArgs e)
    {
        var args = new NotifyCollectionChangedEventArgs(NotifyCollectionChangedAction.Replace, sender, sender, IndexOf((T)sender));
        OnCollectionChanged(args);
    }
}

and define our Property Users as TrulyObservableCollection<User> in our ViewModel

private TrulyObservableCollection<string> _users;
public TrulyObservableCollection<string> Users
{
    get { return _users; }
    set
    {
        if (_users == value) return;
        _users = value;
        NotifyPropertyChanged();
    }
}

Our UI will now get notified about once a INPC-Property of an element within the Collection changes without the need to re-create every single Binding.