I was in a similar position in 2006 waiting for a call from BA Citiexpress. Kept a trickle of instructing/survey work going to keep current, but for too long I put off applying for other jobs and 'wasted' a year as a result. Also turned down a light TP job because it included a year's bond. Turns out I could have worked that year and still be in the position I'm in now.
It's always a hard decision. People tell you take the first job you get offered and tell you you're mad when they find out you turned something down. The dilemna: you're in a hold pool for a decent turboprob/jet job, do you take that light TP/piston twin offer?
The way things are now, I'd probably say keep applying, take what you can and hope for better times. If you stay current and ideally stay employed in any form of aviation, you'll be best placed to move up the ladder when the next upturn comes around.