doradoo - I've been doing this seriously since 6 Feb and have lost a stone. So it's been slow-ish progress, at just over 1lb a week. During that time, I have continued to drink wine - not every day, and keeping a firm eye on how much I'm drinking at any one time. I have been out for dinner with friends during the week, when I have had a drink (not always - a Herculean effort on several occasions!), approximately once a fortnight; we go out as a family for dinner every Sunday evening, and we have an Indian takeaway every Friday.
The point I'm making is that you can do this diet and lose weight, without sacrificing everything - but it will impede the speed of your weight loss. If that doesn't bother you, then it's fine!
You need to know, though, that with alcohol, the body uses it as its first source of fuel. So if you're drinking, the body will be using alcohol as fuel rather than fat.
And it does mean, also, that you have to keep a very firm grip on how much other carby stuff you're allowing - otherwise you'll find the scales going up rather than down!