This assessment is spot on. I'm in this situation now. While I haven't forgotten how to program, my skills have plateaued and have been at this level for far longer than I'd like to admit.
I eventually realized that I needed to get out. I've sent out my resume and interviewed, but have had little success. I really had no idea how bad off I was until I started interviewing at other companies. I can't overstate the value of "practice" interviews. I wish I had done a few practice interviews before starting the process with Google because I did very poorly when I had a phone screen with them. That was a major confidence killer. After the Google failure I interviewed with Apple and went pretty far into the process. I felt like the interviews went really well (phone and on-site), but it didn't work out. I did a few other phone screens with companies after Apple, but nothing came of them. Ugh.
With a family to support I have to stick it out until I find something else. I really want to start my own company, but I can't afford to quit my current job. In the meantime I'm squeezing in work on side projects where I can. It's pretty depressing and stressful.