Reduce. THEN Reuse. THEN Recycle. In that order.
I agree but unfortunately, this runs counter to our system of woefully unbalanced capitalism. I say this because under the current system, producers have a disincentive to reduce production, have a disincentive to make things reusable, and almost no incentive to make things recyclable.
In order to balance the economics of the equation we need to make producers financially responsible for the cost of recycling that which they produce. The result of this is an incentive to reduce the amount produced (to reduce overall recycling costs), an incentive to ensure products are more reusable (to reduce the amount needing to be recycled), and an incentive to make it easy to recycle (since they have to pay for it).
Some people point to economic systems as being the problem but really it's lack of responsibility that is the problem.