This article looks like it has some good ideas in it. But the practical side of me thinks it would probably only work well in the context of small- to medium-sized projects whose users include few, if any, technically ignorant people (libraries, command-line tools, etc.).
This is a circuitious restatement of Fred Brooks' technique of writing the documentation first and having that be the framework from which the features of the code progress, such that usable code is a foregone conclusion if there is nothing in the software that is missing from the documentation. Transposed from mainframe manuals to README files, natch.
The difference, according to the article, is that the README should not be too detailed, so as to prevent the process from turning into a waterfall model by another name.
It's a distinction without a difference when that distinction is merely to include less detail. I don't consider doc-driven implementation to imply waterfall, though. It's just as close to BDD.
Am I the only one who's been jaded by all those Buzzword-driven "methodologies"? If anything, its development-driven-development. Anything else is practices.
Maybe (?).
Also, this has been submitted & discussed before:
http://news.ycombinator.com/item?id=1627246