Best of luck on your next startup. I honestly think that in the end you just had to ask yourself if you were willing to spend the next 10 years of your life working on Beautiful Savings. If your answer is "no" then obviously, pouring more time and effort into that startup seems painful. There's no point iterating continuously on a solution for a problem that you're not dedicated to solving.
I think though once you find that idea that you're genuinely excited and passionate about, you'll find that failure only occurs when you decide to stop iterating. If a person has a solid idea and solid execution, I find it hard to believe that the end result will be graded an "F", more likely it'll be a C or D, unless you are very very unlucky. The idea is the that the next iterations bring it to an A or B.
Obviously there is fatigue in the market due to the saturation. It has become increasingly difficult to sift through lists of deals to find the one that you're truly "interested" in. It's like sitting down with a different coupon book every day and looking for the best coupon to clip out, no one has that kind of time except for the real bargain hunters.
The market will stabilize and settle down, but I highly doubt the concept of "daily deals" or "group deals" will disappear as Forrester predicts. Discounting based on bulk-buying has been around for ages, and leveraging the internet is just a small pivot.