First of all, congrats on being a mommy! I know this is hard, but it will pass. I do NOT believe that you started a cycle. Many experts agree that you can not spoil a baby under 6 months. Even those that don't agree with that surely would agree that a newborn can not be spoiled by holding. Honestly, this is what he needs right now, and I would just do it as much as I possibly could. Get a sling (a ring sling like the Maya wrap, or the Moby wrap are both easy to get online and pretty easy to use, from newborn to toddler. I know of a place in pearland to get a moby if you don't do online ordering.) and wear him. Hearing your heartbeat, feeling your warmth....
Dr. Karp (Happiest Baby on the Block) talks about a "4th trimester" where babies are getting used to the world outside. Most professionals say that you should count from due date if baby was early, so you're only 5 weeks into his 4th trimester (another 3 months, at least!).
Add to that he is high-needs because of the acid reflux...You are one tired mama! If you can keep it up, I would. Let him sleep on you. It will help strengthen his neck and arm muscles because he will try to look up at you and get lots of practice turning his head. THis is good since he can't have tummy time right now. He's getting his tummy time on you!
I honestly believe that you have not spoiled your baby. You are doing what he needs and he needs it more than other babies his age right now. Daycare will handle it. They won't let a newborn lie in a crib screaming, don't worry (no reputable place would, at least, and I'm sure you've done your research). It wouldn't hurt to discuss with the daycare your situation, but he won't be the first baby with acid reflux they've seen. And from what I understand, they do grow out of it pretty young.
I would highly recommend reading Happiest Baby on the Block (or watching the DVD). If nothing, it will help you understand how normal your little guy really is!
It's exhausting, but this is what he needs right now, and you've been doing a great job, it sounds, giving him what he needs.
As for the breastfeeding, this too is normal. I always changed my babies' diapers in between sides (or whenever they needed to burp) to help wake them. My second was particularly sleepy, and I would just get her practically naked to feed her so she would stay awake, and tickled her feet. That worked for us. Some babies are really tired, though, and it sounds like your little man is exhausting himself as well.
Good luck. I really do think this will pass, and in the meantime you are doing what he needs you to do. He will not be spoiled by being held all the time at this age. He's still adjusting to being in our big, loud, bright world, and he didn't have acid reflux in the womb. He's got a big adjustment that he's experiencing right now!