Interesting view, thanks!
One could certainly see elements of pragmatism in current design practice, but it’s more fruitful to consider it a mode of inquiry.
Here’s a text that elaborates on this: http://www.ijdesign.org/ojs/index.php/IJDesign/article/viewFile/1087/604 (PDF).
You might also be interested in Nelson and Stoltermann’s book The Design Way, which explors this third way in greater detail.
While IDEO has done a great job promoting design thinking, it’s a term that goes back to 1965 in a text by Bruce Archer, and was formulated more explicitly by Nigel Cross.
Last, but not least, there are tons of ways to design. Here’s a big PDF thatyou might enjoy browsing through, from Dubberly Design Office.
Best of luck with your MA!