Extreme picky eater

My toddler is 2 and 1/2. We have struggled with eating ever since we tried to transition to table food at 12 months. He was a great baby food eater but never liked the 'state 3' chunky foods. I know I have enabled this problem and now it is out of control. He currently eats: peanut butter crackers (no breads), granola bars, pop tarts, ice cream, yogurt, numerous fruits, pudding, chips, and all types of cookies and candies (of course). He recently has started eating french fries (the only hot food) and will occassionaly eat a chicken nugget.

I have talked with our ped. several times on this subject. She calls him a sugar addict. She is convinced if I simply take away what he eats and only give him what I want him to eat, eventually he'll eat. He won't starve. She also suggests bribing with foods he will eat to encourage him to simply try something.

I have failed at almost all suggestions. I have tried creating decorative fun food to play with; I have tried buying food that is shaped like things he adores such as cars, I have tried bribing - which is starting to work to get him to take a bite of something but twice now he'll take a bite, make a horrid face, gag and spit it up with flem. Will he grow out of this or will I be making peanut butter crackers in junior high?