In a recent issue of STQE Magazine, Joel Spolsky wrote that Test Driven Development (TDD) doesn't substitute for "normal" testing. It seems like he doesn't understand that test driven development is about low-level design, not testing. Programmer Tests are a happy (and intentional) side-effect of the design and refactoring process. It is to avoid this misunderstanding that I prefer to call TDD "Test Driven Design".
Ron Jeffries and Scott Ambler had a little spat on the Agile Modeling Mailing List about TDD, not about whether it constitutes "design", but on how much design "up-front" it entails. Scott started it by writing here "An important observation is that both TDD and AMDD [Agile Model-Driven Development] are based on the idea that you should think through your design before you code. With TDD you do so by writing tests whereas with AMDD you do so by creating diagrams or other types of models such as Class Responsibility Collaborator (CRC) cards."
Ron replied "Does TDD suggest that you "think through your design before you code"? I see no such thing in TDD. In TDD we write ONE test, then make it work, then write another." [He's leaving out the refactoring step here, which is another area of design in TDD.]
Maybe Ron doesn't think writing each test is "thinking" or "designing", but I do. At the risk of being snide, I assert that each test represents more thinking than a lot of programmers do when they write code without tests. Perhaps Ron's extensive experience has made his designing unconscious.
When writing the test, you think about the API, the goal of the API, and how to verify the goal is met. That's design. Before you start writing the tests, you think about whether to extend an existing class (and its tests) or to start a new class and new tests. That's higher level design. After you write a test and make it pass, then you look to see if there is duplication or other design smells to be refactored away. Still more design. Perhaps Ron thinks this refactoring step is the only design step in TDD.
Check out Kent Beck's book: Test-Driven Development: By Example for an introduction to TDD. Unfortunately, only a very experienced (zen-master-level) programmer like Kent Beck can take the refactoring step of TDD (remove duplication) and derive all the other good design principles from that. So read Robert Martin's book Agile Software Development: Principles, Patterns, and Practices, which not only uses TDD extensively in its copious examples, but also documents design principles that every programmer should know.