No probably, it is. MFP does the same thing. If you change what your "lifestyle" is.

Sedentary: Spend most of the day sitting (e.g. bank teller, desk job)
Lightly Active: Spend a good part of the day on your feet (e.g. teacher, salesman)
Active: Spend a good part of the day doing some physical activity (e.g. waitress, mailman)
Very Active: Spend most of the day doing heavy physical activity (e.g. bike messenger, carpenter)

Insanity is basically incorporating in an Active or Very Active selection. Insanity just spreads it a bit more with six levels instead of five.

Sedentary - Little to no exercise
Lightly Active - Light exercise ( 1-3 days / wk)
Moderately Active - Moderate Exercise ( 3-5 days / wk)
Very Active - Hard Exercise (6-7 days / wk)
Extremely Active - Hard daily exercise and/or a physical job

I think MFP is calculating base calories on your base metabolic rate and with the above selection your normal daily activities. Eating back your calories for exercise means you are compensating on those days you burn more than what you would if you just woke up and went through your day without exercising.

Insanity, rather than having you calculate daily, attempts to incorporate that as a daily average calculation. More than likely that is done so that you don't have to do that math every day. Most people wouldn't do that if they had to do that. The one thing you should change in MFP is your, I think macro nutrients is the term. Your balance of proteins, carbs, fats, sugars.

I might be incorrect, but I think generally that is the difference. I changed my macros to be higher protein and low sugar and carbs to emulate the first phase of P90X. Hope that helps.

Edit: MFP figures my base calories at about 1750 for weight loss, but I will be around 2700 calories on the days I do some of the more intense workout.s

MFP had me on 1492cal/day, which was ridiculous in hindsight. My recommended amount is 2538, but I could not bring myself to eat more than about 2K without throwing up. With that said, I don't feel weakened during workouts, and my appetite increased over time. (i can now eat about 2200 comfortably). My advise is to be patient and not force it down.

MFP had me on 1240. I eat 1966

For week 1 and 2, I tried the nutrition plan (factor is very active), but did not see any results in terms of inches or weight loss.

I'm trying TDEE (at Moderately Active) - 20% now. I'll see after 2 weeks if there's any changes, then adjust accordingly.

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See, because I am doing it from the formula from insanity, it already counts an average of those calories burnt during the workout, so I don't eat them back. But that could be why the goal is so high in the first place? Because you don't add calories burnt.
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You have it bang on x

I'm not following it. I think I've mentioned on here before that wheat and a lot of grains give me GI issues if I eat too much of them and the plan is really heavy on whole grain foods. So I'm trying to keep the approximate macros from it but subbing things like fruit or vegetables. I can't really eat more than a couple of slices of bread a week without feeling terrible but it seems like every meal has a bread or something in it.

It's also way more calories than I would normally eat in a day. I'm really short and I have a desk job so other than walking the dog this is pretty much all the exercise I get in a day. Their formula gives me something like 1800 calories for a day and I physically cannot eat this much food in a day. There were a couple days where I was starving so I ate a lot more than I normally do but I haven't made it over 1500 yet. I usually come in around 1300 to 1400-ish and I don't feel like my workouts are suffering.

I haven't been tracking food on here very much but if I start bonking when I work out or I'm not losing anything I will put my food in for a while to try to troubleshoot. I'm just going into week 2 starting Monday so it's possible that I might need to eat more later.