Yes, that's it, Xenosaga. Word of caution though - while the datasheet states that 90K is the maximum recommended Rset value I believe that that translates to the datasheet's stated minimum 50ma of LED current (never fully off). The datasheet never fully answers that question and only shows current up to 35K (Fig. 7 pg. 3).
why not look at the cat4101 - less additional hardware needed to accomplish same thing
CAT4101 is a "linear" device meaning that any supply voltage over your LED voltage gets blown off as heat (just like a linear voltage regulator). There's also a 500mv dropout voltage but that's pretty small. I agree it's not a bad solution under the right circumstances.