WOW i am enjoying this discussion.
Here i have another question...
how much importance is given to project documentation , and processes in agile?
For a 2 week iteration, it is not feasible to go by doing requirement traceability matrix, or updating risk and issue logs, or update the design, as agile deals with continuous change of requirements.
It may be possible for one time, but with time constraints is it feasible to go by having all these in place with frequent changes.
Even for the shortest of the story in agile, hell lotta documentation would be required? isn't it?