The idea is not bad in itself. FDIPR is a federal program that does just the same thing for Native Americans on reservations, and at a glance here and in other studies it seems to work... decently, at least.

However, this program is complementary to SNAP, rather than a replacement for it. It exists because on some isolated reservations (or reservations in general, because frankly the rez be dirt-poor) families in need of food assistance may not have ready access to quality food in the market.

As an official suggestion, gutting SNAP and replacing it with curated commodities because the poors can't be trusted to shop for themselves is an obvious asshole move. It's a restriction and a diminution. Public school breakfast and lunch, meanwhile, is subsidized because children may have nothing else available. Children, as far as I know, are not ever mandated to forswear their parents' baloney sandwich and obtain school lunch.

It absolute right wing propaganda the propagates the myth of steak and lobster being charged to the EBT card.
Then again, why shouldn't SNAP recipients get to eat steak and lobster? In line with what you're saying, the underlying assumption either way is that poor people should only partake of the shittiest food and be grateful for it. It's the same sentiment underlying the snide comments when a food bank distributes donations of premium items: isn't it more efficient to give food bank customers the absolute cheapest canned food?

Even from a purely self interested stand point, it should be noted, Ideas don't start revolutions, hungry people do.
"One day the poor will have nothing to eat but the rich" is a satisfying thought, but the poor as a group will not be allowed to want for calories until the time to die is at hand.