It is difficult to overstate the value of usability testing. The great thing about it is that it does not have to be done on a large scale. Testing with a handful of subjects is of great value.
Often quoted usability expert Jakob Nielson determined that the law of diminishing returns applied to this type of testing. He asserted that the first three subjects uncover most of the design flaws. Others' experiences have born this out.
Usability testing takes the subjectivity out of web development discussions, by revealing what works and what doesn't work.
Testing does not need to be done on a finished product. In fact, it can be conducted using paper printouts of planned navigation. It is helpful to get feedback early on, as well as later in the development process.