Never surrender...
This started out as a lengthy reply, but it all boiled down to this: both you and SM are very intelligent and capable. There are tools at your disposal, make sure you use them fully...especially tech recruiters. The good ones are totally plugged into the industry and will do a humbling amount of footwork on your behalf.
I really beleive that the "don't lose hope" cliche/lesson doesn't come from the rigors of capitalism, but from the uncertainties of life itself.
In a world of yes-and-no answers, sooner or later someone is going to say yes. Keep asking, and tweak the situation as needed to get the answer you want.