Sorry I just have to weigh in here. You are not abusing or neglecting your cat. And this "vet" has no reason to report you to anyone for anything. I would go vet shopping, I've been through every vet in my area and finally found an amazing one.
An FYI here about dehydration there are two basic ways you can check. 1. Feel the gums, if they are sticky or feel a little dry there is dehydration. 2. Grab a handful of skin at the scruff of the neck and pull it up. If the skin quickly slides back into place hydration is good. If the skin sticks together and takes longer to slide back into place or just stands up then there is dehydration and fluids are needed. You can syringe feed the cat water to help with dehydration. Just be careful to give it slowly so the cat doesn't get the water in it's lungs. Also when you get it eating again, mix water into the food. To encourage drinking you can add tuna water from a can of tuna in water (not oil) to the water bowl; freeze a can of wet food and thaw before feeding (this helps to get extra water in the food when the ice crystals melt ); a fountain bowl.
A couple more tricks for appetite stimulation are FortiFlora or sprinkle with grated parmesan cheese. Sometimes I chill a can of food in the fridge and that interests my cat.
There is a pancreatitis group on yahoo groups and that might be one you want to check out.
Good luck and please keep us posted
Anita and Squeaker