I have tried this method after reading about another guy in the states, Paul Kaiser, who supposedly grosses $100k per year per acre by farming this way. It was a big fail for me.
I stopped tilling the ground and instead of working all my organic made compost into the ground, I just mulched it around the vegetable plants. Initially it was great, the compost mulch prevented weeds from growing, and when replanting, I just used the same hole where the previous plant was. For the past two years my yields just got worse and worse to a point where the vegetable gardening became a frustration for me. I discovered that this method does not work for clay ground since the ground just become more and more compact and less able to retain water and air. Even my earthworms disappeared and not even weeds could grow anymore.
My conclusion is that while it may work for certain ground types or hippies, mankind would not have spend the countless energy over the centuries to till the ground for their crops if this was a better way.