You pretty much have it but don't let the naysayers keep you from brewing 3 gallons of high grav wort and top off your fermenter with water like you do extract batches. I have done it, Revvy's done it, and a whole $h!tload of other brewers have done it. And it makes damn fine beer too!
Sure, it is preferable to do full boils. Lots of things I do now are better practice than what I did when I started. But if you don't have the gear yet what the hell are you supposed to do? Stick with extract until you can afford the big kettle? No way! I made a ton of great beer with what I had on hand, learned a lot about what works and what doesn't, and had a MUCH better idea of what I wanted when it was time to upgrade equipment. Brew what you like with what you have. Rant over!