I totally understand how you feel. To give you some perspective, it took me 6 months to land my first full time job… in 1998. The field isn’t dying, you just need to be patient. Think of it like this, what are the chances of the perfect job opening up in the last 3 months? Companies have budgets, and workloads, and all kinds of things.
My advice, if you want to do ID, keep freelancing and working on your portfolio. Once you go down the UX path it is almost impossible to move back out of it. I know someone who did that and it took him years of busting his butt on night projects to prove that he wasn’t one of the many people who go to the UX side because they don’t have core skills to go into ID (a common perception in the ID world, and not totally unfounded).
In the 6 months that I was trying to get a job, I had 3 total crap freelance projects (of course they were crap, they were hiring a kid right out of school with no experience, with no other design staff, and they thought that was a good idea!). I almost took a job at Circuit City but quiet before my first shift (for those who don’t remember it was like Best Buy, but you had to wear a blazer). And I redid my portfolio 5 times in 6 months, completely. Finally it worked out and I started to get offers in November. So I graduated in May and started my first day of work January 3rd.
Hang in there, keep working hard, and post your portfolio. It is hard to give advice without seeing your work. There might be something in your portfolio the group here could help you with in terms of feedback and direction.