Isolation based design is a better name for this metholology.
- dummy - an object that you pass just because you have to pass something, required but nothing is actually done with it
- fake - an object that just doesn't do a good enough job to be the real thing
- stub - fake that returns a set of canned data designed to interact with your test case
- spy - stub that keeps track of the data that is passed to it
- mock - spy that takes a set of expectation ahead of time
Interaction testing is not the only thing, it is not a golden hammer. It needs to be balanced with all the other types of appropriate test methodologies (unit, load, functional, acceptance, system, etc.). Careful when you champion a test technology, be balanced.