I've been doing something similar to that on my propane grill. I take 2 or 3 fist or smaller size chunks of hickory and put them in the hottest area of the left side of the grill. Once they start producing some good smoke I toss the steaks on. I even get a small smoke ring with this method
The flavor is superb!
Next time I am going to try some indirect smoking on my gas grill by having only the left burner on and the meat over the other two. I'll let you know how it turns out.