I assume the psychiatrists don't consult the actual DSM book. They probably learn the various conditions in the book through school. And maybe the good counselors stay up-to-date with the books to know which conditions have been further explained or which ones are obsolete. I think an educated counselor/psychiatrist should be able to observe a patient or listen to them and then diagnose them. This is no different from medical doctors who can tell you why you're sick without having to consult anything.
I'm sorry you've had such traumatizing experiences. In my case, my very first counselor pretty much diagnosed me correctly our first session. I thought the condition "social phobia" as she called it was a bit dramatic myself.
I have received the following diagnoses:
paranoid schizophrenia
schizoid personality
schizotypal personality
social phobia
dysthymia
bipolar disorder
obsessive compulsive disorder
generalized anxiety disorder
Despite the first diagnosis, I have no history of thought disorder. Psychiatrists have been giving me diagnoses, as I said, pretty much at random. Technically, they're required to fix a DSM label, but they do that as an afterthought. One can always describe behavior to make it sound like a symptom. For example, I lived in a noisy dormitory when I was 18. In the case notes, the psychiatrist tries to make it sound as though my perception of noisy neighbors in the dorm was a kind of paranoid delusion: "[my name] believes that someone is knocking on his wall at night." Well, someone was knocking on my wall at night. They were being goofballs. "[my name] has hypnogogic hallucinations." Everyone has hypnogogic hallucinations, but this imbecile wanted them to sound like schizophrenic hallucinations, which they certainly were not. The DSM only played a role after the diagnosis was made, i.e. my behavior had to be described in such a way to make it fit the symptomatic profile of the desired category. If psychiatrists were guided by the DSM, they wouldn't disagree with each other so much about diagnoses. Another thing: I do not have a history of mood swings. The diagnosis of bipolar disorder was also pure fantasy. One can describe anything and make it sound like mood swings. At the time I had vertigo episodes, and the psychiatrist tried to interpret those episodes as euphoria. Now before anyone starts calling me a troll or a liar, just can it. No one wants to hear it.