I don't have a link to any of the studies at the moment but actually low carb diets are the diets which showed to preserve the most muscle tissue compared to other diets.
Ketosis diet even showed to increase lean body mass quite a bit.
EVERY diet will result in decreased fat and muscle, not just ketosis. Ketosis results in the least of muscle loss. So you are losing weight and keeping the good part which makes you lean.
So no, ketosis does NOT mean you are burning fat but also muscle, losing weight means that. Ketosis means you're losing more fat than muscles.
The above results in much less decreased metabolic rated compared to any other diet, which damages your metabolism more severely.
Every diet, every time you lose weight, your metabolism slows down a bit, if you lose fat instead of muscle, the slow is CONSIDERABLY less than the metabolic rate lost when losing muscles, as it is with most diets.
So Jesse's points are somewhat correct but very inaccurate regarding the diet.
Jesse is right about not reducing calorie intake by more than 500 calories though, if you are planning to lose weight it is never healthy to lose more than a pound and a half every week.
While cardio and strength training is always recommended, it is never a must. Although it CAN give much better results, by building up muscle mass.
You must keep in mind, I NEVER recommended ketosis to LOSE WEIGHT, I recommended it to enhance the speed you change where you fat STAYS AT.
I gave two ideas for that: 1) lose weight and gain it back. 2) Ketosis diet.
With the ketosis diet I did not say you need to lose weight, I didn't say to eat less. I said put yourself in a fat burning state WHILE EATING ENOUGH TO KEEP AT SAME WEIGHT.
The above should NOT hurt your muscle mass, taking a good time at night from dinner to late breakfast will not slow your metabolism because you are on ketosis, therefore you will have be burning fat instead of sugar and you'll have energy for the day.