Gee, wonder what that says about standard software development methodologies (under which I work every day as a developer)?

Well, that depends on what you consider 'standard' and 'software'. In the field of business software, after a decade of two-year 'planning, analysis and design' phases (after which the problem has moved so far that one has to start from the square one - ideal situation for big consulting firms), 'agile' methodologies are again in vogue (of course, new converts usually omit the 'again' part). Roger has several useful pointers to one of them, 'extreme programming', here. When I was pushing an 'agile' methodology to my customers some 15 years ago, it was called RAD (rapid application development), JAD (joint application development - in order to stress early and intesive participation of customer's staff) or prototype-based development. We only resort to some formal analysis and design methodology (I still mostly use some variant of structured analysis) only when we cannot find a cutomer's staff member who has an overall idea of what is actually going on in their enterprise.

(Extreme programming has some interesting ideas usefull outside the big corporate application development environment - for example, joint ownership (i.e. responsibility) of all code modules.)