This post was extremely helpful. Thanks to all who contributed. Here is a LINQ version that you will either love or hate.
private void CanExecute(object sender, CanExecuteRoutedEventArgs e)
{
e.CanExecute = IsValid(sender as DependencyObject);
}
private bool IsValid(DependencyObject obj)
{
// The dependency object is valid if it has no errors and all
// of its children (that are dependency objects) are error-free.
return !Validation.GetHasError(obj) &&
LogicalTreeHelper.GetChildren(obj)
.OfType<DependencyObject>()
.All(IsValid);
}