Is the "system" taking advantage of Pet-lovers?

I do believe some veterinarians are money hungry, you need to find a vet that you trust. Try reading some reviews online before picking a practice. That can really help.
As far as shots, there are some that are required every year. That would be the rabies shot, as it's required by law. The distemper vaccine is another one I'd recommended for the first few years of life, it protects against a deadly virus. There are some vaccines that aren't absolutely required but it depends on where you take your dog. The kennel cough vaccine is not required unless your dog frequently goes to the dog park or daycare/boarding facilities. The Lyme vaccine is also not required unless you take your dog hunting in the woods frequently.
Flea, tick and heartworm medication is another thing I'd say is very important. You don't want fleas in your home and ticks can carry diseases, such as Lyme. Heartworm disease can be spread by mosquitos and they're everywhere so it's better to be protected.
As far as food I'd say as long as your dog likes it and it doesn't give him diarrhea or cause allergies it should be fine.
Let me know if you have any more questions, I'd be glad to help