I can't speak specifically to the cereals, but nope on everything else. Wine and caffeine probably in moderation. He is pretty realistic.
He simply gets you to start thinking about using foods that are processed as little as possible so that the fiber is harder to digest and eating foods which are low in sugars (Phase 1 has no corn because it contains a lot of sugar). Cut oats as opposed to rolled oats or, heaven forbid, instant oatmeal. Sweet potatoes as opposed to white potatoes. If you read the book, you'll see that the diet is really the way your grandparents ate.
The diet keeps your sugar levels much more even and lessens cravings. I think you'll find it very practical for use in everyday life.
I'd be happy to loan you both the SBD and the Paleo Diet for Athletes. Zen on BJ developed his own diet plan which ended up being similar to the Paleo Diet.
Frends know gud humors when dey is hear it. ~ Da Crockydiles of ZZE.