I see this as the same as a reasoning loop. This is the approach I use to quickly code up pseudo reasoning loops on local projects. Someone had asked in another thread "how can I get the LLM to generate a whole book", well, just like this. If it can keep prompting itself to ask "what would chapter N be?" until "THE END", then you get your book.

It's part of why they love agents and tools like cursor -> turns a problem that could've been one prompt and a few hundred tokens into dozens of prompts and thousands of tokens ;)