Yes and then it gets pumped back to the top of the waterfall and goes through the entire process. Many organizations became so rigid that this was a problem. It is what Tom Smykowski in office space is a parody of. It's why you get much of the early web having things like the "feature creep" and "if web designers were architects".

Waterfall failed because of politics mingled into the process, it was the worst sort of design by committee. If you want a sense of how this plays out you simply have to look at Wayland development. The fact that is has been as successful as it is, is a testament to the will and patience of those involved.