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Agreed, except for the part that "controlled indexing and abstracting fee-services in the sciences are confined to a number of peer reviewed journals." In biomedicine, even the highest-quality database of all, MEDLINE, contains citations that are not coming from peer-reviewed journals. For a factsheet on MEDLINE journal selection, go here:

http://www.nlm.nih.gov/pubs/factsheets/jsel.html

For a quick answer to "are they all peer-reviewed" go here:

http://www.nlm.nih.gov/services/peerrev.html

Peer-review itself is a matter of context and can't be interpreted as an absolute synonym for "high quality", but I completely agree that it is a better idea to rely on gatekeepers like bibliographic databases than it is to rely on naive keyword searching.