No way can I afford the sander AND Festool dust collector so if I attach my shop vac with the flexible (Rockler) small diameter rubber hose I have will the dust be pulled through the port?

Yes, you can use a non-Festool brand vacuum without any issues. There are various stepped adapters and other types of converters that will allow you to connect your shop vac hose to the sander's 27mm (1") port.