It works like this:
1) User Experience
2) User Interface
3) UI Design
4) Development
You left out the User Interaction Model, which arguably is more important than UX. And the whole thing has to be an iterative process if you want a decent chance of producing something usable.
That said, the key phrase in the article, for me, was "users complain that designers never watch what they do". The "never" isn't true, but "rarely" would probably be accurate. There are a number of well-known user research methods that involve looking at what users do, such as user ethnography and contextual inquiry.
When designers fail to do appropriate user research, it may be because they're lousy designers, but it may also be because no one wants to pay for proper design. Proper design involves significant user research involving multiple methods, in each cycle of revision.
Biting the hand that feeds IT
