I've been playing guitar for seven years now. The past two years I have pretty much stayed at the same point. Basically, I've hit a brick wall. I've spent the past couple of years feeding my ears every musical style imaginable and honestly I just don't know where to go from here. I don't think i've written a decent song in a long time.

Honestly my position on the matter any more is so pathetic I don't even feel like playing half of the time. I dislike this greatly because I used to love jamming out with my friends and staying up all night with an acoustic guitar and a notebook to write in. I just don't feel motivated or inspired to expand my horizons anymore as much as I'd like to get back in my groove and start playing music again (I know a bunch of people around here who are musicians and i'm almost embarrassed to mention that I play guitar because I don't feel like I can stand up to the challenge.)

Has anyone else experienced this? What are some good ways to get out of a rut like this other than taking LSD and going on a 4-month soul-searching quest to India?
Nope, I think you're jost gonna have to take LSD and go on a 4-month soul-searching quest to India.
Just jam with those other musos that you know. It'll give you a reason to practice, and you'll learn some things about your own playing along the way.

In terms of "can't stand up to the challenge", jamming with other people is not a "challenge" in the competition sense, it's a partnership between yourself and your jam buddies. If they're good musos they'll be able to accomodate to your skill level and taste in music.
And no, Guitar Hero will not help. Even on expert. Really.
^what Alan said.

If they are advanced they will 'dumb down' to accomodate your skill level, so it'll make it easier for you to play with them. For instance, if they usually play in some crazy jazz style with constantly changing keys and whatnot, perhaps they'd consider sticking to one simple key in order to help you progress. It's about having fun playing together, not competing about who knows/can do more.
Perhaps you can use that ''can't stand up to the challenge'' as motivation to play more, practice more and become a batter guitarist...

Hearing someone who can play way better then me is always an ispiration to me.