I once did a university Spanish course that used Destinos (http://en.wikipedia.org/wiki/Destinos), a 52 video episode course that uses techniques that you describe. A textbook and a few workbooks are also provided, as using what you learn is key to remembering it. I see that there are similar courses for English, French, and German linked to from that Wikipedia page.

I bet that the cost of producing high quality video is quite high, so that is indeed probably one of the primary reasons that such material is rare.

I recall there being some videos produced by language podcasts (including JapanesePod101, if I remember correctly), if you look for them.