You are definitely not alone in your thinking (obviously)
Atkins seems to bring more of these types of people out of the woodwork. Any weight loss program makes you lose water and muscle. But the water issue re stabilizes and with exercise the muscle you lose will be insignificant to the muscle you gained. I am hesitant to even tell people I am following the Atkins approach because of how negative it is seen by those who don't understand what it is or how it works. Atkins has a bad rap but those of us who follow it and feel the benefits know a wonderful secret that those other refined carb and sugar munching folks don't know, Atkins works and makes you feel awesome! Living healthy and well is the best revenge in that sort of a circumstance