Ok, I thought that made sense until I tried it yesterday, and it doesn't actually work like that. Selecting "Search for Item by Crafting Method" on a gathered resource will still stay in the crafting log and try to find a crafting recipe for it. It won't find any, of course, but will just reply with a "no recipe found" message rather than going to the gathering log. Although both the crafting and gathering logs have an "Item Search" or "Recipe Search" box where you can type in the name of an item, the context menu part (which is where it's called "Search for Item by Crafting Method") is exclusive to crafting recipes. So I'm back to my earlier opinion that it should be called "Search for Recipe".
Moving on from what it's called, I also have another request about this context menu option:
Can that "Search for Recipe" option please be enabled in the context menus wherever we see craftable items? If I'm looking at gear on the MB, or checking out the cool looking gear someone is wearing, I often want to know "Could I make that?" or "How hard would that be to just make myself?" If we had that "Search for Recipe" option from anywhere, and when selected it would open up our crafting log to do the search, it would be easier than trying to remember the item and go back and look for it ourselves later. Having it while we're in the crafting log already (where it is now) is the most useful place for intermediate crafting components like ingots and cloth, but expanding it to also appearing elsewhere would let us search for the finished product recipes easier.
(Expanding the feature to working from everywhere would, however, need one additional piece of intelligence in the feature. Make it only appear and be enabled if the item is indeed craftable. If it's not craftable (like with the gathered resources that now attempt a search and reply with No Recipe Found), then have the option either not appear in the context menu or be grayed out / disabled.)