The flaw in calorie restrictive diets is your body eventually adjusts and adapts and you stop loosing weight. So any type of cycling diet like you have described is an attempt to thwart that effect, and probably will have different levels of success for different individuals for both physiological and psychological reasons. You just have to try it and see if it works for you.
I recall reading of controlled studies that showed that after a period of calorie restriction there is a marked increase in growth related hormones (like HGH and testosterone) when the calorie intake is suddenly and dramatically increased, creating a anabolic like affect that increases the accumulation of lean body mass, but I can't find any references right now.