There is a name for this approach to design. It's called Activity-Centered Design , and Don Norman has written a bunch about it here:

http://jnd.org/dn.mss/human-centered_design_considered_harmf... and here:

http://www.jnd.org/dn.mss/hcd_harmful_a_clari.html

Highly recommended reading. I feel like it's a good sign that the community keeps re-inventing this. It means that it has some real legs. Another great example of our best practices slowly strangling good process.