I do low carb and lost 20 lbs on it last year. My whole family does atkins "lifestyle" which makes it hard not to at my house. The problem is you can't go off of it...it's a LIFESTYLE (as I learned the hard way in my first year of college).
As to which diet is better (low cal vs low carb) I think it all depends on what works for you and what you can live with without driving yourself crazy. I did read somewhere though, that people doing low carb are actually losing weight because they are eating more protein, so they are fuller after meals and dont snack and therefore eating less calories than they usually would...dunno if thats true tho?
Russel Strover makes good low carb chocolate candies and I just tried the Hershey's "1 carb" choc. bars and thought they tasted fine (keep in mind I haven't eaten reg. chocolate in a long long time) As for other food that are being marketed as "low carb" such as chips, chocolate, ice cream, etc...the whole point of a diet is to get away from this junk food anyways? I guess thought if you need the occasional "fall of the wagon"...these would be better than eating the real chips/choc/ice cream...