I don't really know what the better alternative is, that will meet the social/business/workflow needs that are the reason PSD-driven development happens.
Except that it will involve some attempt to find a way to be more 'agile', as compared to the implied waterfall model in "we give you a PSD and you implement it." Ideally, I don't think they'd be giving you "it should look just like this" PSD's at all. They should be giving you wireframes and appropriate assets as assets. But this will end up being 'more expensive' probably, with more hours spent on back-and-forth and iterations, compared to the waterfall ideal of "here, just do this."
Good software is very 'expensive' (in terms of professional developer hours). It's why we live in a world of really crappy software.