Activity-centered design?

Nancy Kaplan thinks that User-Centered Design is limiting, and that we should do Activity-Centered Design instead. She sets up the following dichotomy:

User-Centered Design:

• Testing constrained to artificial lab settings
• Focus on errors and inefficiencies
• Focus on the user's initial usage
• Looks at discrete human actions/tasks

Activity-Centered Design:

• Observation of more realistic human behavior in real settings
• Looks at the whole user experience
• Looks at long-term use
• Encompasses human activities (broader context as well as tasks)

While I agree that we should include context in our work, I disagree that User-Centered Design, when conducted properly, doesn't do this. It felt like a false dichotomy to me. But she had good points despite the exaggeration.