These results indicate that aerobic endurance exercise by well-trained cyclists was not compromised by four weeks of ketosis. This was accomplished by a dramatic physiologic adaptation that conserved limited carbohydrate stores (both glucose and muscle glycogen) and made fat the predominant muscle substrate at this submaximal power level.
 
http://www.ncbi.nlm.nih.gov/pubmed/6865776
		 
 
 I'm sorry for those who hate papers but I can't leave this with just this quote from one.
 
. It is misleading to say that people use  fat or carbs to fuel exercise, they use a mixture.  The cyclists had a  RQ    (respiratory quotient) which dropped from 0.83 to 0.72. ( 1 is the expected value for carbohydrate utilisation and 0.7 for fat )) So pre  ketogenic diet they were already using a fair amount of  fat in the mix. 
The small reduction apparently happened in 10 days ie this was the  time to 'adapt'     '
 
These are the results of the trial:. After the ketogenic diet.
Cyclist 1 took 48 min less time to exhaustion, Cyclist 2 took 51 min less time to exhaustion, 
 Cyclist 3 took 3 min more time to exhaustion, Cyclist 4 took 30 min more time to exhaustion
Cyclist 5 took 84 min more time to exhaustion.
 
 The last  cyclist , with an 84 min increase. has a huge effect on an average of only   5 people.
You may like to read what another well known exercise scientist/ triathlete says about this 'aberrant increase'
http://www.rice.edu/~jenky/sports/coggan.html
 
 Basically    two of  the cyclists did  badly  at 'sub maximal' exercise ,  one not much difference, one a bit better and one may have done brilliantly (with the caveats  above).  
In this tiny sample we have 5 individuals with 5 very varied responses.
 
Phinney  in a later paper tells us something not mentioned in the original paper.
  ".The bicyclist subjects of this study noted a modest decline in their energy level while on training rides during the first week of the Inuit diet, after which subjective performance was reasonably restored' 
except for their sprint capability, which remained constrained during the period of carbohydrate restriction "
 
So he  confirms  that  they  were  back to normal after the first week  but  also adds   that  their  sprint capacity was  shot . They  wouldn't have been able to raise the energy  to overtake and get away from the peleton  or  for that final burst to the finish (or up Box Hill) for that matter Not much good for an elite cyclist.
 
Most people aren't elite athletes. Having a glycogen reserve  may not matter if you have no need to make a claim on those reserves.  Others who enjoy sports  might be more competitive  and others may have jobs that demand instant energy in their daily lives.
It isn't a question of fat or carbs for everyone,  many of us have need of both.