The cytokine release is exactly what I was describing. It only happens when there is damage and infection to heal. You do not see an inflammation response in a healthy person when they eat sugar/starch. The glycemic index stuff is pretty much nonsense. If you don't have type I diabetes your body is perfectly happy to sop up spikes of sugar and it does no harm at all.
I would recommend Ari Whitten's "Forever Fat Loss" as a book on fat loss nutrition.
I don't know all the detailed claims ketogenic diet advocates make, all I know is that sustained low carbohydrate diets are damaging and a very bad idea. They do in fact work for fat loss in the short run, which is why so many people are buying into it.