Naked Conversations or how a book about blogging was written using a blog

This is probably one of the most interesting stories I have heard about how technology can be used to create something of real value and just one more proof how it changes our lives inadvetantly. Its the story about how Robert Scoble and Shel Israel wrote a book called "Naked Conversations: How Blogs are Changing the Way Businesses Talk with Customers". Scoble's blog was started in 2000 and now has more than 3.5 million readers every year. He has earned acclaim in Fortune magazine, Fast Company, and The Economist. Shel Israel played a key strategic role in introducing some of technology’s most successful products, including PowerPoint, FileMaker, and Sun Microsystems workstations.
The basic of the story is that Scoble proposed to Shell to write the book by bloging about it, not by sitting around and chatting and when the book was ready they were to publish it on e-bay for the publishers to bid for it to be published. Did it work ?
Yes and it is being sold even now. I will not take the time to take the juice out of the story you can look at it here just rewind to the 20th minute. Not that the 20 minutes before that are not interesting but they cover another topic :)