Teresa mentioned what I believe to be the crux of the matter in her post.
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The reason to write a novel is because the story you want to write is a novel. Just as the reason to write a short story is because the story you want to write at that moment is a short story
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John also mentioned the main point that a lot of want to be writers find hard to swallow;
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Much of the time, there is one reason why a book is turned down: the writing isn't good enough.
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If you can accept that your current "baby" is not up to the mark, you have, in my opinion, two options. Cry woe is me, no one understands how wonderful my writing is and sit, sulking, and never get anywhere. Or you sit back down and start thinking, how can I improve my writing and start producing a new "baby", which might, and I say might, make it into print.
I honestly think you can't start second guessing the industry when you don't have a product to sell. Produce a product that is the best you can do, then study the market and try and place the work where you feel it might (again might) find a home. If it doesn't try again, each time try and do it better. It might not work, but unless you try you will not make it at all. Also listen to those in the business, go to conventions, read as many blogs by industry people and writers as you can, treat it as a job you want to have, and sadly you have to ditch the rose-tinted glasses, they don't help at all.