I think you mixed up the order of step 2. The piece of fat should be at the end to lubricate the cooking service. Wetting it again after would be counter productive.
Also I don’t recommend a regular sponge for the water cleansing step due to the materials involved not necessarily be heat safe. Soaked paper towels work great.
The problem is some propane grills are fairly low power and will require a long time to "burn off" the grease and other stuff. I routinely do it with mine, but it takes at least 10 minutes full blast...
If your grill is dirty enough, you may end up causing a fire that will burn through the enclosure (I've seen it happen). It's also fairly polluting, so if anyone's outside it's best to clean some other way. I like the onion trick myself.
1. Let the grill get hot, simple by waiting some minutes with the charcoal on fire
2. Rub with something to clean old grit, with paper, half of an onion, piece of fat from some meat and any sponge slightly wet being good.