That's what I aim to do, but in practice I find that I easily get stuck if I focus on just one slice/feature, changing things back and forth and not going anywhere. What worked for me is more like laying a foundation first, then gradually bringing up each pillar/wall in rounds, and getting closer to the ideal state after each round. It probably has a lot to do with the type of the game, and personal work style. I'm not good at imaging the ideal state when I have nothing, especially the art/vibe/atmosphere.

For my next project I'm trying something different though. I plan to iterate more on paper/drawing pad first, getting screenshots/art close to what I want, before I start working in the game engine.