This might work for some people but for me, if by 1AM, I'm not sleepy and I get out of bed to do something else, there's probably no chance I'll sleep at any reasonable time and then be able to wake up at a time like 7AM. I would in fact probably sleep in that day and ruin my schedule, which could start a negative trend. From my experience, I find that even just lying in bed and resting my eyes even if I can't fully sleep is the best way to go. A few hours of meaningful rest in bed alone with my thoughts is time well spent. 1AM is too late to start "occupying myself until my body is ready to sleep". If I needed to do something like this, I would start a few hours before the time I'd like to sleep. First tiring myself out with a quick workout or something and then taking a cold shower which will make me want to bundle up inside a blanket and get super comfortable.
This sounds like complete nonsense, and zero evidence is presented. It's just an ad for some app, as if what people who can't sleep need is to be bothered by their phone. There are myriad causes of insomnia including physical, psychological, environmental, and combinations. Stress and anxiety are the biggest factors for people like me. I sincerely doubt this guy has ever had insomnia from anything other than partying too much. If I followed any of the listed advice I'd be up for a week at a time.