Lots of people seem to feel that that last step is Wrong and, therefore, spend a lot of time experimenting with step 3 so that they can omit step 5 (i.e. using an amount of water such that they don't need to drain it and then complain that they have undercooked rice or burned rice. But, really, there's nothing wrong with step 5. If you think about it, why should there be? It's rice. It's not going to cook any differently in more water than in less water. It's not going to dramatically change texture by being moved from pot to colander. I sometimes accidentally get the water amount exactly right and it does not taste any different to when I drain it.
The real trick with rice, in my view, is to make sure you cook it for the correct length of time. If you're inexperienced, the best way to ensure that is to start tasting it from the 10 minute mark to make sure you don't miss the window. Once you've been doing it for a while, you can just do it by eye.