All of this is really true and absolutely frustrating.
I'm job hunting myself right now and it's been extraordinarily frustrating. I am simultaneously both overqualified and underqualified for basically everything out there, which means I've been without a full-time job for about a year (at least I have a part-time to keep me coasting). I am underqualified because I have so little career experience... I'm only recently graduated from the university, so I don't have a lot of the background and years of experience in the field of work so many jobs are looking for. But I'm also overqualified because I have three BAs and an MA and so forth, which makes me a bit overqualified for any of the jobs that don't require that prior experience. It's a catch-22 and it's making me so increasingly frustrated... I would be more than happy to take just about anything, but no matter how many times I've applied, I've hardly even received an interview!
Here's to hoping that this job market improves sometime soon...