If you look at the 3 reasons the author did this - 1, the students don't pay attention to the feedback, that is easily solved, you hand them the feedback and hold back the grade for 1 week. - 2, they don't like grading students based on their incoming skills? That's easy to solve, you weight their grades by time in the course. Hell, you can grade their first 3 peices of work and not use them at all in the final grade. - 3, You don't like grading. Well that's fine, but the cost of doing this is that you're taking away the single most important indicator that the student is meeting expectations in your class.
Some students will cruise through, seeing the feedback comments, assuming it's good enough, only to come to the end of your course with a lower grade than expected. Their first concrete indication that they're not on track is when it's too late. Some students will submit work and then continually revise it, continually under the threat that they won't get that perfect grade they need for the next step in their career seriously impacting all the other things that are expected of them.