Bit late to contribute here, but I'm glad things are settling down a bit by the sound of it. She is your baby - well done for working through this. I don't think she'll be embittered at you in later life because you took her bottle, and of course it's your own decision, but I don't think a toy will spoil her.
As far as your DH being worried about the toy, I think as long as all the toys a child has are not out together, and they just have a few toys at a time to choose from each day, then it does not affect their attention span. I believe there is research to back that up (I don't think I made it up :) )
We stopped both DDs using bottles around the 6-7 month mark. They were drinking water from sippy cups from weaning (the Tommee Tippee ones that everyone has - can't remember the name of them...). We found they wouldn't drink milk from those same cups - I guess it was confusing. We tried a couple of different ones with no luck, but the Amadeus Cow Cup proved a real favourite with them and they never looked back, though they did drink slower at first.
We were really worried about DD1's teeth, but this was because when I stopped expressing (after 5 1/2 months) we found she was allergic to milk, so she went onto Soya formula, which is always sweetened unfortunately. I do know someone whose daughter lost all her teeth from drinking soya formula from a bottle, but have never seen anyone have a problem with regular milk. Thankfully DD1's teeth are fine. We just did the same with DD2, though she was on regular milk - it seemed normal for us after DD1. Now both girls are not that interested in milk. I asked the paediatrician about it and he just said so long as they have a balanced diet then there is no problem, and that "milk is not a magic food".
Hope it continues to get easier.