@dreamer30 She absolutely can continue to breastfeed. You two are doing so well! You can't see it right now because you're in the newborn trenches, but this is a minor bump in the road. Breastfeeding is a journey with a lot of highs and lows. This is normal. She has not ruined breastfeeding and she will produce more.
First, bring your wife water all of the time. Get her a bottle (Stanley or whatever she prefers) and keep it filled. My doctor recommended I drink at least 80oz a day for breastfeeding. I don't know what her doctor would say, but keep that mama hydrated! It will take a day or two of proper hydration to get results.
While you're at it, buy yourself a bottle and keep yourself hydrated, too. You need to be in good health for your family.
Second, the amount she pumps does NOT reflect how much that baby gets when breastfeeding. Babies are much better at removing milk from the breast than a machine. Additionally, an 8 day old baby has a walnut sized stomach! They can only fit a couple oz at a time. Its why they seem to feed every hour and why you'll get so little sleep.
Third, I would caution her about power pumping at this point. Her supply is still establishing itself for the first few weeks, not days. Keep offering the breast as often as baby wants it. Offer both breasts if baby still seems hungry. Maybe pump for an extra 10 or 20 minutes after each feed.
She needs to be cautious about creating a huge oversupply. This can lead to clogs and infections called mastitis. Both can be incredibly painful and can even land her in the hospital. Right now, pumping occasionally after feeding is probably more than enough.
And it goes without saying, listen to your doctors over what strangers on the Internet say. Take time to ask questions and research, but there is a LOT of bad information out there.
Congrats on your little one!