[sguav]

HDL (hardware description languages - Verilog and VHDL the most representative ones) do actually work like that.

They give you access to structural descriptions for bitwise control, but also and mostly behavioural descriptions which allows hierarchies of modules (the blocks you described) and abstraction up to anywhere basically. This last part is generally referred to as RTL (register transfer level) design.

To make a circuit from this RTL description you usually need more steps: synthesis (where RTL gets "compiled" into the actual gates and flops to be used) and implementation (where the logic gates of the previous step are actually translated in the "fabric" you have available - FPGA logic blocks, a foundry's standard cell library ...).