I agree with you on the benefits of strength training, but right now all my time goes to cardio, with a full body workout thrown in once a week (bench, military, pullups, seated rows, deadlift). It's really hard to gain real muscle when on a caloric deficit (I'm almost 1000 cals under what I need in a day), and I'm very scared of injury because I feel weak right now. Plus, strength training is much more difficult than cardio... I'd rather watch a nice tv show on the elliptical than have to concentrate and lift stuff 😀.
I agree it is difficult to gain muscle on a hypocaloric diet (even on anabolic steroids), but the reason to continue to do resistance training as you lose weight is to keep your body from jettisoning too much muscle mass. Are you on a strict time table to try to lose weight? If not, a 500 calorie daily deficit might be more reasonable, especially if you want to maintain a decent amount of lean mass. It's much easier to not lose muscle in the first place than to lose it, then try to build it back up.