Need to know how much you have to lose- this makes a big difference on how much you will lose in induction. Personally I think that 4lbs is GREAT for 2wks. It's really not good to lose too fast. But I could see that being disappointing if you had like 100lbs or more to lose or something like that- because then induction should be more of a weightloss.
The "average" is around 10% of the weight you need to lose. So 4lbs is around 40lbs needed to lose.... even if you needed to lose up to about 60lbs- that's still within the range. More than that, you probably should have lost more.
You said "pretty faithfully"- and it really makes a difference if you don't do it totally how induction should be. That means eating NOTHING that isn't on the induction foods list. Atkins said even a bite is the kiss of death (a bite of a nonlegal food) on induction.
Are you drinking plenty of water? If so, are you also drinking other things like crystal light or other splenda diet drinks? Those can stall some people.
I notice you have some allergy issues that are making it where you can't eat some things- but then you also said that protein is pretty much all you eat. Are you not eating the amount of veggies you should be every day? And also not eating them all in one meal and spreading them out atleast in lunch & dinner? Veggies is where your carbs should come from- and many will stall or not lose as well if they eat TOO low on the carbs. Have seen many have this problem. Also if the veggies (ie: the carbs) are all in one meal, particuarly if it's dinner, that can cause insulin spikes and all sorts of problems- including slower weightloss.
Also you are NOT supposed to go hungry -especially on induction. Atkins says if you are hungry- eat. If you are not hungry, still eat something small and low carb every 6 waking hours (not going longer than that). He also said that if you are hungry with tummy grumbling/etc- you should have eaten an hour ago. So he definitely does not suggest anyone ever be hungry, especially in induction. This may be why you are still feeling the way you do- not energized yet/etc. This is not a starvation diet. If you are hungry- eat... just don't overeat. Which means if you are hungry, eat but only eat enough to satisfy you- not full/not stuffed/etc. Even if that means you are snacking all day instead of 3 meals or whatever- atleast in induction. Then when you get into ketosis, you'll lose a lot of that appetite and you might even have to start forcing yourself to eat atleast something small every 6hrs even if not hungry!
And one last thing- I have read on the boards that SOME people don't get through the "induction yuckies" (on how they feel during induction) longer than the 2wks. It's not the norm for the majority of people- but some have mentioned they didn't start feeling better till after 3wks and such. So you might feel a lot better if you just hang in there just a little longer! You've gone this far.... and you've lost 4lbs which is nothing to sneeze at... you can go a little longer until you get the reward of all your hard work by feeling better, more energy, etc!! You can do it!!
Also Atkins does say that exercise is important. I didn't really exercise the first few months at all- but then I also have 3 young children and with the extra energy I eventually started feeling after about 2wks- I did a lot more with them and got some exercise that way without technically doing "exercises". For some people they are even more important than others- so they have to exercise where some might get away with not exercising. Everyone's body's, metabolism, etc. are different. It doesn't always work to just eat less than what you THINK your basal calories amount should be-your body is not the same as everyone elses and really no one can tell you what that amount of calories would be for you to eat under that to lose weight- yanno? Not based on height, age, gender, nor activity level. Your body is your body- and everyone is different.
I'm so sorry you are discouraged, I hope maybe some of my questions (with your answers) will help us to figure out why you aren't feeling good yet and why you didn't lose more.... IF you should have lost more during induction. Really depends on how much you have to lose.
{{hugs}}
Everyone is built differently and everyone will lose at a different pace. Even with Weight Watchers, I noticed I would loose a little here and there and then one week have a nice big loss! 
Definatley time to get a new scale at home. LOL.
