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Calories in, calories out is not the golden rule, and this has been scientifically proven false. Also, hilarious adventure I went on once: I ate 4000 calories of bacon a day and nothing else for a month... ended up cutting it off a little early because I was losing weight too quickly. Your second and third points however are scientifically supported, but do not confuse this with "obesity is complicated." It is not ho…
You've provided almost no information, but at 340 lbs it's possible your TDEE was more than 4000 calories/day, meaning it's possible you went on a reduced calorie diet with your bacon strategy. Without more information, your anecdote is useless, and even with more information it's still just an anecdote. Also, Paleo, like any similar structured diet, is just a trick to get you to ingest fewer calories. And I'm going…
As for calories in/out being a simplification, while it is mostly true, the tricky bit is that calories out actually varies wildly with the foods you eat. Your body's hormonal milieu changes very significantly with what you eat, and that has a massive impact on your biochemistry. Additionally, the microbes in your gut have certain food preferences, and they can metabolize a significant fraction of the calories you eat. Thus, hormonal shifts and rate of microbial metabolism can spike your "calories out" far above what would be predicted by BMR and activity level (and the reverse is unfortunately true as well).