I never understood the write a quick first draft, then go back and edit (re-write) the whole thing method. I use the same basic method you describe. I read what I previously wrote, edit what I read, then write more. I repeat that every time I write. If something I write causes a change earlier in the story, I go back and make the change right then. When I get to the end, there is very little editing needed.

But to each their own.