It's called "The Steam-Grommet Factory" in the Turkey City Lexicon
. Interestingly, I *love* world design, and all my stories generally begin as an exercise in world design (even the fanfiction, which usually arises from me looking at the world and saying, "Hmmm, what happens if I break *this*?"), and yet I also suffer from a lack of place. Plot is secondary for me -- once I know what the world is like and what each character behaves like, plot just grows out of that -- but when it actually comes time to write everything down, I tend to leave out the world and just write the characters and plot. (Well... I have a tendency to skimp on characters too, because I'm afraid of being melodramatic and veer too far in the opposite direction.)
Place can be very powerful. The climactic battle between good and evil has a very different tone in a suburban park on a sunny afternoon relative to a decayed urban landscape on a dark and stormy night, even if the characters and the actual events of the battle are identical. And depending on how exactly the place is described, the battle in the sunny park can be silly or tragically ironic; the battle on the dark and stormy night can be epic or melodramatic (hint: using the phrase "dark and stormy night" automatically precludes epic ;-P ).
But it's hard. I struggle with it constantly. Often, while the assumptions and social structures of my world are constructed in great detail, I know nothing about how the main character's bedroom is decorated, whether it's messy or neat, and so on. I have to force myself to sit down and work these things out, and then find ways to stick it in the story. Often it feels like I'm just sort of jamming it in wherever I can, but I have to persuade myself it's easier to have it there and move or streamline it in a later revision then to try to add it after the fact.