This is a great form of triangulation. Counter-balance between:
1. Complete out of box thinking
2. Bounding by business/technical realities
3. Wireframe down to specifics to sanity check
I think that this process is technically common but in practice, very few companies actually make this work.
From my experience, this occurs either because they come at things from a heavy prototyping culture but struggle with the filter down part of the process; OR, come at things from a 'right answer first' mindset which constrains out of box thinking; OR have a culture that has a disconnect between market-facing requirement dynamics (e.g., customer outcomes/aspirations) and product requirement dynamics (e.g., functional attributes).
The key thing in Apple culture is that this is a perpetual process in product development as opposed to tied to a specific stage so it is an ongoing forcing function. As others state, Apple also has a strong, forceful personality that provides the "INSANELY GREAT" or "TOTAL ****" binary vote.
Mark