The Atkins diet basically eliminates all carbohydrates as opposed to lowering your intake like other low carb diets do. The problem with a no carb diet is that it doesn't make the distinction between good and bad carbs.
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Good carbohydrates are found in fruits, vegetables, whole wheats, oats and other grains. They contain high amounts of fiber, vitamins and minerals. Without these essential nutrients our bodies can't function properly. They protect us from disease and help us better utilize the food we're eating.
Bad carbs are found in sugary foods including soda, junk food (cookies, chips, candy) and white flour. Eliminating or reducing your intake of these carbs is a good idea. An excess amount of sugar can cause obesity and type 2 diabetes.
If you ask people on the Atkins diet if they've lost weight, most will say yes. This isn't because carbs make us gain weight, it's because eliminating all carbs from our diet will cause a decreased calorie intake. There's only so much you can eat when you can't have any carbs and because of this you'll be eating less.
Calorie intake is the only thing that will help with weight loss. If a diet decreases your calorie intake (in a good or bad way) then you'll lose weight. All diets work in this way but some do it in a healthy way while others such as the Atkins diet don't.