What's not waterfall about this is lost on me.
Sounds to me like you're arguing waterfall is fine if each full run is fast/cheap enough, which could happen with LLMs and simple enough projects. [0]
Agile was offering incremental spec production , which had the tremendous advantage of accumulating knowledge incrementally as well. It might not be a good fit for LLMs, but revising the definition to make it fit doesn't help IMHO.
[0] Reminds me that reducing the project scopes to smaller runs was also a well established way to make waterfall bearable.