Observation v Insight

LegosSo much talk these days about Insights.  But have you found that more-often-than-not people are mistaking observations for insights?  I've been using an example for years, and I can't remember if I stole it from someone or thought of it on my own.  Either way I think it's pretty good, and I encourage you to steal it from me.  Using Legos as an example:

Observation:  Kids like to build stuff.  Parents like when their kids build things because it keeps kids busy and teaches them how to problem solve. 

Insight: Parents believe that children who are creative problem solvers will do better and achieve more in their personal and professional lives.

Product development and marketing communications based on the observation would fall woefully flat and off-target.  Getting to the insight can be a dirty process, but it's so worth the effort.