Was George Kennen correct in that the Soviet system has to feed off the economies of other countries in order to survive
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Parasitism is a symptom of all statist nations. The only way that I know of the USSR showed that tendency was through the stealing of technology from the west in order to provide the basis for their own Space Shuttle, Aircraft, etc. They conquered militarily through insurgency in the Middle East and southeast Asia. So from that point of view the Soviets really exhibited parasitism. If a nation has an economy then that economy , by the very definition, is reguired to produce wealth, this can never be acheived (not real wealth anyways and not for long) with artificial means. In other words things must be produced and sold and technological advancement is a must for the economy is to continue. So yes George Kennen is correct at least by definition and the argument is a valid one.
This is the reason the containment Policy was put into place
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The containment policy was put into place because , IMHO, the communists were just to large to fight, 100,000,000 people is a strong adversary. There is another set of rules that exist that show when to fight and when to stall,etc. Normally found in SUNG TSU, "The Art of War". It still exists even when by all definition it is morally right to destroy a foe, sometimes you cannot, at least not simply because it would be right to do so.
Is this what actually happened to the Soviet Union, or was it something else
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That is just one aspect of what happened to the USSR. Its people could not own property, they could not produce wealth therefore the insintive to create for anyone outside oneself is totally gone.