A design document substitutes for a script.
So does a game. You don't just sit down and go 'okay well I guess we should get started' and start programming the game with no idea where it's going.
You'd be surprised.
Many,
many games have started with people just messing around, coming up with some fun basic gameplay, then just continuing to work on it. In a large-scale professional project, sure documentation is very important to keep track of where you're going and what you've done. But it's absolutely possible to make AAA products without a general design document, and an iterative process that continues to change and refine features and ideas as the game progresses is probably even the norm nowadays.
I don't think it does... Or rather, a design document of sufficient level doesn't get written for 99.9% of all games written. It is my opinion that you can judge the quality of a movie by it's script better than you can judge a game by the quality of the design documents that get written.
True. Although even movie scripts can turn out very, very differently with different directors, too.
There's... There's nothing notable in this. He's describing publicly funded small business. That's all.
True, the business plan is not new, but making games this way is. Especially looking for funding from fans over the internet. Even small fan-funded projects like Mount&Blade and DF use slightly different systems. I'm not sure this idea would be much better or different, but it's one more idea that might help someone get started.