No. The use of BMI to categorize children (or anyone) as obese does more damage to one's psyche. Use of medical models to categorize has become out of control. The idea of diagnose and fix is "abuse" in the larger context (imo) as it creates a culture that says something is wrong with one's child. As we are willing to learn I think we can shatter some of these myths.
I struggle to see why BMI has any credibility at all. When I at my heaviest my BMI was something like 34.6 which put me well into the "obese" band and I'd only need to gain a few extra pounds to count as "morbidly obese". I don't dispute I was fat but the label "morbidly obese" just costs credibility.
Now my BMI is somewhere around 28 which lands me firmly in the middle of "overweight". I could still lose a few pounds around my middle but I do enough walking and running that people tell me my leg muscles are ripped. I don't see it so much myself, given I don't spend a lot of time looking at them, but when I'm walking towards a large glass storefront and see my reflection I can see they are pretty hefty. Muscle is heavy, but BMI doesn't differentiate.
According to BMI figures my "ideal weight" is something like 60 pounds less than my current weight. I don't honestly think I could lose that much weight and still be healthy. I know we've come to regard overweight people as being normal but I think losing 60 pounds would leave me looking literally anorexic.
As for obese kids it comes back to definitions, which get blurred by useless metrics. It is bizarre to think that letting a child play without standing over them watching their every move is considered all but abandonment, while letting a kid sit in front of the TV and feeding them pizzas and chips until they are spherical is considered safe. But then most things about kids and rules these days don't make much sense.