The alternate approach holds that reality IS belief and belief creates reality.

It sounds to me that the only difference between the approach in the quote and the alternative is the question of the influence of the individual on the nature of reality. Do we create reality through our consciousness, or is there an objective reality that is imposed upon us from outside? Perhaps there is a different answer. I personally feel that at the very least we have the power to define reality through our own perspective, and we certainly influence the outside reality through our actions. To what degree our mind has on our reality, I do not know. Maybe I should start using the word "reality" in quotes. Trying to express my own answer has my brain flying around desperately in three or four different directions.

Reality is like God, just because you do not beleive in Him does not mean He is not real.