Sorry but the body doesn't burn just-eaten food that quickly. If you eat at 2pm instead of 11pm you're still going to be burning those calories when you go to bed at night. Ask any serious runner and they'll tell you that they do their carbo-loading the night before a race and that all those carbs still make a huge difference 12+ hours after consumption.

Unless you somehow burned through all your carb stores before bed you're not going to be burning much fat while you sleep. Plus sleeping itself burns very few calories so don't expect to be melting away pounds by sleeping.

and besides, who cares if you're hungry when you go to bed, you're asleep!

I think you hit on the biggest reason why this so-called diet works. People don't notice their hunger when they're asleep and thus less likely to cheat.