There have been a couple of threads that discuss theophostic counseling. There's some discussion of it here:
http://forum.gcmwarning.com/general-discussion/there's-nothing-new-under-the-sun/ Apparently it was only practiced in a few churches, not the entire movement.
If you do a forum search for "theophostic," you'll find a couple of other interesting posts. The search feature seems to return a lot of false hits, so I suggest paging through the results until you find the ones with "theophostic" highlighted in yellow.
For the record, I know nothing about theophostic counseling so I can't offer a personal opinion. I tend to be skeptical of new counseling techniques that haven't been objectively vetted or evaluated. (Edit to add: I'm especially skeptical of any counseling technique that asks us to imagine God doing things He didn't actually do. That just seems a little off. But since I don't know anything about theophostic counseling, perhaps I'm misunderstanding what really happens.)