Obviously you're depressed by this turn of events. My suggestion would be to walk away from it for a little while, and then go back and look at it again.

Honey, the truth is that the majority of people who practice a craft or skill or sport are mediocre. That's what "average" means. And they (we) do it out of love or the pure enjoyment of it. Not everyone can be a master of their craft, and the world would be a poorer place without the local theaters and entertainers and sports teams.

If you still feel that theater is your ideal career, well, there are other venues. Many of my friends tried to break into theater in NYC. None of them made it, but most of them went on to have happy careers in the entertainment world. One is well-known in regional theater and cabaret; another is a very successful casting director; another is now a wealthy man because as a stage asst in the CT trial run of "Annie," he was sent out to find and train a dog as Sandy :) Others were stage managers, voice-over talent, actors in training films. There are so many other roads.

I'm not saying don't grieve your dream, but I am saying don't let your road end with that.