I think what we are doing here is having an impromptu Intervention for smets.
I hope you're not offended or bothered by this, smets, but I agree with the others re: you needing to commit to living the dream. (I also am intrigued by the Onstad book and my gut response is, "Oh shit co-writing is where I'm a viking where do I sign up," but as you say it's unlikely that 'Stad would be down with it.)
I say this as a generally timid and risk-averse person who fears failure more than death -- you gotta jump in. Being an unpublished writer is like being an "actress" who waits tables and goes to auditions in her spare time.
Getting published is gut-wrenching. It's terrifying and painful and nerve-wracking and awful, and when you get an acceptance letter it's a better high than any drug you can imagine. (Well, I dunno. Cocaine might be better, I never tried it.) Dithering around and not submitting work for publication is like refusing to fall in love for fear of getting your heart broken. No risk, no reward.
I am a busy lady, but I am also a good fuck*ng copy-editor. I have a brotherly affection for you, so I am offering right here and right now to read anything you send me and offer suggestions and feedback as often as you need it, free of charge. However, I do this on the following conditions: whatever you send has to be COMPLETE (whether it's a short story or a novel), and after I've marked it up and you've revised it, you have to submit it someplace for publication (even if it's just a non-paid literary magazine).
This is a thing I usually charge good money for, I am offering you hundreds of dollars worth of services for free in an effort to get you to *do* something with your writing. This is because I believe in you and I want you to be happy.
Also because I believe that all writing is collaborative. Behind every successful fiction writer is a supportive copy-editor or somesuch person (see also: Tabitha King) who reads endless drafts of a work before it's ready to put in front of a publishing agent's tender eyes. I have Pedro for this, and I don't know if your SO reads/comments on your stuff, but if you don't want me to read it please get someone, because editing your own work is incredibly difficult and you do not have to do it alone. And nothing helps you get over submission anxiety better than someone whose opinion you value saying, "It's excellent, send it in."
It's your work and it's your dream, but I think you're trying to do it in a vacuum, and that is sucking (sorry) the life out of you. There is a whole community of people here and IRL who support you and want you to succeed; let us help you and encourage you instead of looking at your shoes and telling us why you don't deserve our help. Are you emotionally damaged? Maybe, yeah even probably. Join the fuck*ng club. Healthy, happy people are terrible writers; stop using your pain as an excuse and start using it as a tool.