Chemicals & Fleas?

The more I have learned, the more i stay away from chemicals as much as possible. My neighbor is veterinarian and has a dog rescue right next to my house with anywhere from 50 to 100 dogs at a time. My dog hasn't had fleas ever but recently she got em, probably from next door. There on my dog, in my house and in the yard. I hate these pesky critters. In an attemp to avoid the normal chemicals used on the yard, in the home and on my dog, i have been looking at natural remedies. I found food grade diatomaceous earth is a key component. The DE kills fleas by drying out there exoskeleton and it is safe for the yard, home and even on the pet (although you need to be cautious on pet cuz it can dry there skin. I also have a child i dont want around chemicals. Ive also been using a natural shampoo for my dog that kills fleas, flea larvae and flea eggs. The shampoo worked good at first but now is basically doing nothing and my dog is now scared of me because i bath her often. The regimen to kill fleas is as follows...

1. Mix DE in water w some dish soap and spray the yard.
2. Bathe dog w natural shampoo as needed.
3. Use a flea comb daily.
4. Sprinkle in house and let sit for at least 2 days. Also, put under furniture and leave it.
5. Vacuum regularly every few days.
6. After about a week get nematodes and spread in yard so they can eat flea eggs.
7. Repeat

So everything was going good until my vacuum broke and now there back. The DE will dry your skin out if directly gets on skin. Its been a pain in the ass. Im working hard to get rid of these things naturally and its getting exhausting. If i step on de powder bare foot it painfully drys my feet out. I also have my son and keeping him out of de zones is alot of work. On top of it i have my father begging me to come spray chemicals. So now im back to square 1 and at a crossroads. Flea drops for dog (which can harm your pet and cause some health issues and side effects no one ever talks about) and chemical the yard or reattempt my natural DE method. What to do, what to do?