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I disagree with this approach. Creating a mockup in an organized Photoshop file is much less time-consuming, and can be easily revised. Designing from a blank slate in Photoshop (while keeping browser restrictions in mind) allows for more creativity and variety.
Also, the advantage of a Photoshop mockup is that it is only a flat image file. If your relationship with the client ends after only a mockup image was delivered, at most you’ve lost a design idea.
When delivering to the client what is essentially a functional website template, what is to prevent your website (code, stylesheets, graphics, etc.) from being taken without fully compensating you for your work? If you have delivered a mockup created in the browser, the client could walk away with everything and complete what you’ve started with minimal effort.