Most of the stories I hear about using an agile/iterative development "methodology" are from those in the consulting world.  It's nice to hear about people in product organizations, such as Adobe, using agile/iterative development successfully.  I've heard a number of people say it isn't possible due to the nature of product organizations, it sounds like the Photoshop development team might disagree.  They switched to a more agile approach and cut their bug count by approximately 1/3, ended up with a higher quality product with plenty of features, and ended up working fewer nights and weekends.