It works, but it's not sustainable. You can't go through life counting calories. I also used the Hacker's Diet for a time back in 2003/2004. I lost about 60 pounds, and then over the next 4 or 5 years, proceeded to put 40 of them back on.
This year I've re-lost those 40 pounds, and am working on losing another 40, not by counting calories or otherwise trying to find low cal versions of everything (hard to do anyway now that I'm in Norway), but by being more conscious about what I eat (trying to eat more fruits, veggies, and whole grains, while eating fewer processed foods and sugars) and exercising regularly, which is much easier to do. Well, the exercise part still sucks, but I remind myself that once I get to the weight I want to be at, I only have to go enough to maintain that weight.