1) No, that's incorrect. Western med functions quite heavily on diet, exercise and the like. Here's the problem, what are you going to do as a medical professional if you have a patient "walking" into your office grossly out of shape and exhibiting absolutely zero will to do the things that will actually correct their situation? You can tell people to exercise and eat right until you're blue in the face, but you can't make them do it. So you give them the info and in the mean time control what you can through chemistry.
2) Chemistry is chemistry. There is nothing different in TCM chemistry vs western chemistry. Except western chemistry is verified to work on some level where as much of what is in TCM has not. Its all about relative dosage. The perfect example of this food vs medicine stuff is resveratrol. Yeah, its in food. And yeah, it has effects on treating cancer. No cover up conspiracies, no attempts by the evil pharm industry to keep it suppressed. Perfectly public knowledge. Its also perfectly useless. Why? Because to get the dosage required to actually do anything meaningful, you'd have to drink about 120 glasses of wine every single day. Concentration. The issue is, yeah, when you make things in the required molarity, it's toxic. What's more important at that point? Side effects or dying of cancer? No chemical, at therapeutic levels, is without toxic consequences. Think of it this way. How much vitamin c would you get from a single orange? How many oranges can you actually eat? Do you think you could get the same amount as you would by drinking a glass of juice? Or better yet, taking a vitamin pill? What are the side effects of those? That's a lot of acid in a glass. You can only get so much from food. At some point, we have to give nature a boost.
I'd venture to say TCM fails far more often than western procedures. Far far more often. But to say that western medicine doesn't approach things holistically is insidiously inaccurate. Its market slandering by the alt med industry. Western doctors most definitely attempt to address the underlying life style issues. The problem is most people don't give two ****s about making those efforts.