Lots of children seem to go through this phase. I remember someone saying to me that it's their way of asserting their independence. That maybe as well, but as a parent it can be very frustrating.
My husband and I ended up deciding that they would eat when they were hungry, and in fact, as humans we are meant to be grazers and not sit down to three huge meals a day; so toddlers are just following what they have been programmed to do through evolution, rather than what we have been programmed to do through society. As an adult you know that when you're not very hungry it can be hard to eat; toddlers are exactly the same, they just can't verbalise it and say 'I'm not hungry right now.'
Please don't feel there is a correct way to feed your child. If distractions work and get more food into them then carry on. That's you ultimate aim. My theory is, they won't need those distractions when they're sixteen. The techniques you use now, are exactly that, just for now, to get you through this phase.
You might want to try giving him little and often. So cook him his normal food and when he gives up after a few mouthfuls, take it away, carry on with what you were doing and come back to it in say half an hour, or less if you can. It can be time consuming, but I believe that your son is going through a phase, so you won't have to do it for long.
What you want to avoid is making meal times into a battle zone, so when he refuses, be very matter of fact, take the food away and try again later.
Hiding vegetables is not unusual, there are several books out there, with authors making a fortune, on how to hide veggies in kids food.
There may also be a reason for his food refusal, I know if mine were coming down with something or they had some teeth coming through then they would go off there food. Whatever the reason, I'm sure it's a phase.
Good luck!