I admit I only read about half of it, but I don't think the second half could convince me why anyone would ever think this concept works.
If you teach children to guess based on the pictures, they are not reading - that much should be obvious. I'm confused how they would even start to read anything without pictures. You cannot guess based on the context if you cannot read deep enough to establish one, even worse your context could be wrong.
However, the worst advice is to skip words. You're not learning new words if you skip anything you don't know already.