Yes, JB3, you are right in what you said. However, there are only a few ways to diet(excluding keto). Overall you need to lower calories either by lowering carbs or fat intake, or doing cardio.
I agree that lowering carbs to that level is very tough, and I hate it. But I dieted for 6 weeks using the 0.8-1g of carbs and 1.5-1.3g of protein. I did lots of cardio and got good results the first 5 weeks. The body gets use to this type of diet VERY easily. That's why I now use shock dieting, you're body will never know what you are doing next. Low calories a couple of days, followed by moderate calories, and just when it thinks you are going to revert back to low calories, you jack-up the carbs and lower protein.
This diet is for people that have plateaued(sp) and their bodies will quit losing fat. It can also be used as a "quick" weight loss diet. Because of it's extreme in nature and potentially catabolic it is better suited for use with gear or at least an EC stack, and you must keep a close eye on your muscles. For most ppl this will actually promote lean muscle GAIN, because their bodies are not accustomed to this type of eating.
I did not pull this diet out from thin air, it is a precontest diet that I have modified. Some precontest BB use a more extreme version of this diet.
"This is why I don't understand those insanely high protein diets. Unless you're on gear, an intake of more than 1g/lb is no needed. You'll simply be using the excess as an expensive fuel source or storing it as fat."
This is not an insanely high protein diet, remember that to lose high amounts of fat you need to lower carbohydrates drastically. Protein intake must be kept very high, much higher than the 1g/lb used for bulking.
Of course this diet would be completely worthless to obese individuals, but a highly trained bodybuilder(most ppl that call themselves bb anyway), it is the safest way to high fat loss. Simple diets just won't cut it for some ppl anymore.