That works in my head too, though I'd always add the caveat that you need both and should endeavour not to sacrifice one (even temporarily) in order to improve the other. Along that path (particularly compromising the health side in a pursuit of dramatic weight loss) fad diets and the like lie, and those things rarely work long term.
One important factor that I've noticed (warning: anecdotal evidence approaching, be prepared to engage critical thinking) is that while exercise increases my appetite it doesn't seem to increase it as much as the extra I'm burning off. The difference isn't large but it is noticeable when watching closely and it seems to be relatively consistent: yes my body wants me to eat more when I exercise more, but it seems content with getting less extra in than the extra it has put out so if I just listened to my hunger I'd still slowly lose weight. This doesn't seem to be the case in periods when I do little or no exercise beyond my daily routine (walking to/from work and such) - I don't stop feeling hungry before I've eaten the right amount to stay at a stable weight.
One important factor that I've noticed (warning: anecdotal evidence approaching, be prepared to engage critical thinking) is that while exercise increases my appetite it doesn't seem to increase it as much as the extra I'm burning off. The difference isn't large but it is noticeable when watching closely and it seems to be relatively consistent: yes my body wants me to eat more when I exercise more, but it seems content with getting less extra in than the extra it has put out so if I just listened to my hunger I'd still slowly lose weight. This doesn't seem to be the case in periods when I do little or no exercise beyond my daily routine (walking to/from work and such) - I don't stop feeling hungry before I've eaten the right amount to stay at a stable weight.