JC,
Mate, recruiting are ****, you are just going to have to suck that one up! If you want it bad enough, you will wait! Walking away is not going to achieve anything, you will still not be in and you will still be in a crappy job you don't like. You will however be leaving a spot for somebody who really wants it!
I am assuming by talking about the Seahawk that you are applying for Navy, well get used to waiting as it will be quite a few years before you become operational even after you get wings! I have a few mates off my pilots course that have finished the squirrel (after 2FTS) and have been told up to 2years for Op conversion. Every service is hurting for conversion spaces post wings, so waiting WILL be part of the game. Again if you really want it, then its no big deal!
If you decide it is worth the wait, perhaps you could try PSA to find out how you sit in the pool? Remember they only take from the top, possibly why you are waiting? (Not trying to be rude there mate, you just never know who is ahead of you?)
As for the Observer, ATC, ACO thing, if you want Pilot, go for it! Dont accept becoming a Blunt due to frustration, only take it as a second if things dont work out!