If the $1 Prototype methodology were simply about cutting costs, I would consider it a failure. Instead, cost cutting is but a fringe benefit of this methodology. The primary benefit is its laser-focus on the customer, with rapid investigation and modeling of the goals, activities, and tasks. Instead of being focused on deliverables (that is on producing expensive, time-consuming and flashy wireframes and prototypes) the product team is focused on most efficient ways of finding the opportunity to help potential customers, producing a working prototype solution and validating this solution with real people.