That is your interpretation. It's not an illegitimate interpretation, inasmuch it conforms with the observation that most of the D&D 3E rulebooks are about combat and the observation that many people play D&D 3E as if it were all about combat. But it ignores the text of the rulebooks which state that overcoming challenges does not necessarily mean beating people up; the designers' intent which was to expand the scope of actions for which a DM would be expected to give XP from those spelled out in earlier editions; and the purpose of 3E which was to cater to as many playstyles as possible (if to no one in particular very well). That being the case, I don't think it's a very good interpretation. Certainly it is an interpretation that is very ungenerous to the designers.