"I think...........I would like to go with Canon - 70-200mm f/4 USM L Telephoto Zoom Lens. Can you critic this selection please?"

Have you actually looked through one of these lenses on a camera? It's a telephoto. OK if you're shooting wild animals from a distance but useless for a wide panorama, an interior or even a group. You just can't "get it all in" without walking back a long way

"Camera .................I was initially thinking 50D...now looks like I have to retched down and go with either new 550D or 500D or 450D............what will be your suggestion ?"

How big do you want to print? If it's no bigger than A3 (13x19 inches) in good light then even the 450D is more than enough.

"I think we have TOO many choices, 1 simple choice should have been better .....to make our life simple. What have we gotten ourself into in the name of development/progress/cutting-edge technology/"

These are all just tools which are adapted (or not) to do certain things. Right now you don't have the experience to know what is best suited to what you want to do.