Yeah, that's one way. Of course it could also be said "why don't folks just use the sun"...I mean, it mimics nature.
Germinating the seeds before planting them in your medium does a couple of things.
One, it shows which seeds are viable without having to wait to see if they actually sprout.
Second, it shortens the time. Germinating in water will get the seeds to sprout quicker than "just planting in grow medium".
But hey...Not saying this way is the only way. Great thing about this hobby, there are many "right" ways.