I think you're going a little overboard with some of the restrictions but I can get behind others.
Keep in mind that food stamps ALSO go to working-class underemployed. If I had children with the factory job I could get in this economy I would probably be on food stamps. I don't see an issue with a bulk pack of frozen chicken fillets or the occasional 2-liter of store brand soda.
On the other hand, candy and other things... yeah I agree.