Yes, I believe that workflow should work, though if you are using an editor, you may have to re-apply the hacks in between edits. I know the standard bitsy editor will automatically remove any hack code upon load/save, but I'm not sure about bitsy savior as I don't use it. So you may have an extra step between your step 3 and 4 that is "re-add hacks to .html file."
Generally my workflow from start to finish is:
- Create and edit the bulk of the game in the editor, making notes of what hacks I'm planning to use but not implementing them yet
- Playtest the game in its current form in the editor until satisfied
- Download the .html
- Add hacks
- Load the .html in browser and check that everything is working as expected
- When there are errors or things to change, right click the .html file and open it in notepad, then edit from there.
- Retest .html file in browser as necessary until game works the way I want
This allows me to skip having a "re-add hacks" step, but does mean monkeying around in the code a bit, so it depends on what you are comfortable with.