Yes, its called whole word learning. Its how I learned to read, and how my kids learned to read. its not a gestalt, its simply shape recognition. You learn letters and common letter combinations and how to work out words you do not know later instead of first. its not a very reliable process in English though! Are you sure of the correct pronunciation of a word you come across only in written form?

The advantage, in my experience is that you learn to read faster and its more fun. You start off with something like guessing game with flashcards and kids quickly learn a wide range of words.

The disadvantage maybe that it really needs one to one attention. Great for kids that learn to read from parents (like me and mine), but not going to work well in a classroom.