The purpose of the restriction against hot food is not to humiliate or dehumanize poor people, but to (attempt to) ensure that food stamps are used in a thrifty, responsible manner, as hot/prepared foods are typically marked up for the implicit service rendered to the buyer. The rule seems stupid the more you focus on gray areas, but the idea is that the recipient won't go out and blow their monthly allotment in a single night at some fancy steakhouse or whatever. Is this micromanaging? Yes. But the program funding is not earmarked for such indulgences and good stewardship of the tax dollar demands some oversight.
As a former recipient, I found it frustrating and sometimes confusing to navigate permissible uses of EBT at places like Subway or Pizza Hut, where use can be limited to select items or locations. However, I primarily used EBT for groceries and found the program incredibly helpful for the six months I was on it. Restrictions should probably be streamlined a bit, but ultimately I was just grateful for the existence of the program and refused to take advantage of it when I no longer needed it.