Yes, the method is simple: massive exposure to input (see the Assimil "without toil" series for a good example). Using spaced repetition and NLP you could introduce gradated input customized to the user to provide ever increasing vocabulary and grammar points. This is a practical version of what your dotsies example would look like, individually adapted to users.
I've actually thought long and hard about how one would construct such a site and what the algorithms would look like to provide effective language learning. It's just one more thing I don't have the time to actually do, however, as much as I would love to actually use the site...
EDIT: If someone actually wants to do this, email me.
Where might I find your email? I've thought a good bit about this too, I actually bought extensivereader.com a few years ago as a placeholder when I was experimenting with building something, and have recently been considering attacking it again.
I've actually thought long and hard about how one would construct such a site and what the algorithms would look like to provide effective language learning. It's just one more thing I don't have the time to actually do, however, as much as I would love to actually use the site...
EDIT: If someone actually wants to do this, email me.